Trump Warns of ‘Big Retaliation’ if Europe Divests From US Stocks and Bonds
The Chronify
US President Donald Trump warned European countries of strong economic retaliation if they begin selling American stocks or bonds. His remarks followed a Danish pension fund’s decision to divest from US Treasuries amid rising transatlantic tensions.
US President Donald Trump on Thursday warned European nations against divesting from American financial assets, saying Washington would respond aggressively if such actions were taken.
“If that would happen, there would be a big retaliation on our part,” Trump said in an interview with Fox Business, adding that the United States holds “all the cards” in any economic dispute.
His comments came after Denmark-based pension fund AkademikerPension confirmed it would sell its entire holdings of US Treasury bonds, amounting to roughly $100 million.
The fund said the decision was driven by concerns over US fiscal stability rather than politics. “The decision is rooted in the poor US government finances, which make us think that we need to make an effort to find an alternative way of conducting our liquidity and risk management,” said Anders Schelde, the fund’s chief investment officer, in a statement to CBS News.
Schelde added that the move was “not directly related to the ongoing rift between the US and Europe,” but acknowledged that current tensions did not make the decision harder.
Reports also suggest that Greenland’s SISA Pension is reassessing its exposure to US stocks amid renewed American pressure over Greenland.
Meanwhile, US Treasury Secretary Scott Bessent downplayed the significance of Denmark’s divestment, saying at the World Economic Forum in Davos that he was unconcerned.
“Denmark's investment in US Treasury bonds, like Denmark itself, is irrelevant,” Bessent was quoted by CNBC as saying. “That is less than $100 million. They've been selling Treasuries for years. I’m not concerned at all.”
“If that would happen, there would be a big retaliation on our part,” Trump said in an interview with Fox Business, adding that the United States holds “all the cards” in any economic dispute.
His comments came after Denmark-based pension fund AkademikerPension confirmed it would sell its entire holdings of US Treasury bonds, amounting to roughly $100 million.
The fund said the decision was driven by concerns over US fiscal stability rather than politics. “The decision is rooted in the poor US government finances, which make us think that we need to make an effort to find an alternative way of conducting our liquidity and risk management,” said Anders Schelde, the fund’s chief investment officer, in a statement to CBS News.
Schelde added that the move was “not directly related to the ongoing rift between the US and Europe,” but acknowledged that current tensions did not make the decision harder.
Reports also suggest that Greenland’s SISA Pension is reassessing its exposure to US stocks amid renewed American pressure over Greenland.
Meanwhile, US Treasury Secretary Scott Bessent downplayed the significance of Denmark’s divestment, saying at the World Economic Forum in Davos that he was unconcerned.
“Denmark's investment in US Treasury bonds, like Denmark itself, is irrelevant,” Bessent was quoted by CNBC as saying. “That is less than $100 million. They've been selling Treasuries for years. I’m not concerned at all.”
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