Trump promises retaliation if European countries sell US stocks and bonds. “We have all the cards,” says the White House leader
US President Donald Trump has issued a new warning to European states, saying Washington will hit back hard if European governments start selling US stocks and bonds. The threat comes amid rising tensions over Trump's ambitions over Greenland and a campaign of pressure on NATO allies.
US President, Donald Trump/PHOTO: EPA/EFE
Asked if he feared a possible withdrawal of European capital from US financial markets, Trump dismissed the scenario but sent an unequivocal message: “If that were to happen, there would be, you know, serious retaliation from us.”
“We have all the books“, the American president added in an interview given to the Fox Business station, conducted in Davos, where he is participating in the World Economic Forum.
The remarks come after US Treasury Secretary Scott Bessent on Wednesday played down a Danish pension fund's decision to divest from US government bonds amid concerns about the “precarious state of public finances” in the US. Bessent described Denmark and its investments as “irrelevant” in the context of the increasingly tense dispute between Washington and Copenhagen.
The Danish fund announced the withdrawal of an investment of about 100 million dollars – a minuscule amount compared to the market of US government bonds, valued at more than 30 trillion dollars. Still, the data shows Denmark holds nearly $10 billion in U.S. bonds in total, an exposure that has been steadily declining: in 2021, it stood at more than $17 billion.
Even if the immediate financial impact is limited, the political message is a significant one. For the first time, a European ally is publicly signaling that political tensions with Washington may have concrete financial consequences — a precedent that worries the White House.
Trump pressures the defense industry: “We have the best weapons, but they come too hard”
In the same interview, Donald Trump also addressed another sensitive topic: the American defense industry. The president again praised the superiority of American weaponry, but criticized the slow pace of production and delivery.
“We have the best equipment in the world — the Patriot, the Tomahawk, the F-35. They're all the best,” Trump said. “Other countries want them, we want them too. We need more. But it's taking too long.”
“We need to do them faster”the White House leader insisted.
Statements are not random. Earlier this month, Trump directly threatened major defense companies, warning that he would seek to limit stock buybacks and executive pay if they did not speed up the delivery of weapons systems to the US military.
The message reflects the administration's growing frustration with the military industry's ability to meet the demands of global conflicts and the growing pressure on the US to support its allies.
Overall, the exits from Davos outline a president who combines economic threats with political pressure and the rhetoric of force — both toward adversaries and strategic partners and industries. It remains to be seen whether this strategy will strengthen the US position or deepen the cracks already visible in the relationship with the European allies.
