US President threatens massive response if European countries sell American Treasury securities amid trade tensions.
Trump’s Warning to Europe
On January 22, Donald Trump gave an interview to FOX Business. The show’s host, Maria Bartiromo, pointed out that European countries possess “trillions of US bonds.” When asked if he was worried they might sell them as retaliation, Trump responded that if they did, there would be “a great retaliation from our side and we hold all the cards.”
Proposed Tariffs on European Nations
Speculation about European countries selling bonds emerged after Trump announced he would impose 10% tariffs on Denmark, Norway, Sweden, France, Germany, Great Britain, the Netherlands and Finland from February. The Republican stated these tariffs would rise to 25% on June 1, 2026, and remain in effect “until a full and complete purchase agreement for Greenland is reached.”
Policy Reversal After NATO Meeting
On January 21, the US President changed his position following a meeting with NATO Secretary General Mark Rutte. During the meeting, “frameworks for a future agreement regarding Greenland, and indeed the entire Arctic region” were established. Trump announced that based on this agreement, he would not impose the tariffs that were scheduled to take effect on February 1.