- President Trump warned of major retaliation if Europe sells US assets over Greenland tariffs
- Trump did not specify retaliatory actions during his Fox Business interview at Davos
- A framework deal involves US missile deployment and limits on Chinese interests in Greenland
President Donald Trump vowed "big retaliation" if European countries sell US assets in response to his tariff threats related to Greenland, adding pressure on them to stick with an emerging deal over the future of the island.
"If they do, they do. But you know, if that would happen, there would be a big retaliation on our part," Trump said Thursday during a Fox Business interview at the World Economic Forum in Davos. "And we have all the cards."
The president did not specify what actions the US might take to follow through on that threat.
Trump's now-abandoned plan to hike tariffs on goods from eight European nations to pressure them over control of Greenland prompted speculation that Europe could dump trillions of dollars in US bonds and stocks as a countermeasure. Such a move could rattle financial markets that have already been shaken by Trump's pursuit of the Arctic island.
Under the framework deal that persuaded Trump to defuse the Greenland crisis, the president would agree to stand by his promise to hold off on fresh tariffs on European products. In exchange, the US would station missiles in the semi-autonomous Danish territory, while mineral rights would be arranged to limit Chinese interests and the NATO presence there would be bolstered.
ALSO READ: Trump Abandons Tariff Threat After Framework Greenland Deal
Before that deal, there were signs that Trump's aggressive play for Greenland had shaken the confidence of some US asset-holders in Europe.
Earlier: Greenland Pension Fund Mulls Divesting US Stocks on Trump
The Danish pension fund AkademikerPension announced this week its plans to exit $100 million in US Treasuries, and Greenland's SISA Pension has said it is mulling whether it should continue investing in US stocks.
Still, the "Sell America" strategy would likely prove complicated. The bulk of assets are held by private funds outside the control of governments, though some large holders - including Norway's sovereign wealth fund - could affect US capital markets with a selloff.
US Treasury Secretary Scott Bessent earlier this week downplayed the Danish sale, saying he was "not concerned at all" that it signaled a broader divestment effort.
"Denmark's investment in US Treasury bonds, like Denmark itself, is irrelevant," Bessent said Wednesday in Davos. "They've been selling Treasuries for years."
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