US President Donald Trump warned on Thursday of a strong reaction if European countries sell large quantities of US Treasury bonds to pressure Washington, amid escalating tensions over the future of Greenland.
Trump said in a program on Fox Business, “If that happens, our response will be harsh, and we hold all the cards.” However, he acknowledged that European countries hold significant shares of US Treasury bonds.
Escalating tensions over the fate of Greenland
Trump’s comments came amid escalating tensions over the fate of Greenland, the autonomous Danish territory that the US president seeks to acquire.
The US president has repeatedly stated that the United States, the pivotal power in NATO, deserves Greenland because it would have to defend it against Russia or China, noting that neither of these countries has claimed sovereignty over the territory.
Recently, Trump’s threats to impose tariffs on European countries for refusing to comply with his demand regarding Greenland have caused concern in global markets.
Observers: Europe wields economic influence
Currently, some observers believe Europe wields economic influence in this situation, as European NATO countries hold US Treasury bonds worth more than two trillion dollars. If Canada is added, the figure rises to approximately three trillion dollars, according to government data.
On Wednesday, the Swedish pension fund “Alecta” announced it sold most of its US Treasury bonds over the past year, citing what it considered volatility in the current administration’s policies and the growing US debt.
Thus, “Alecta” became the second major Nordic fund to announce such a decision, after the Danish “Akademiker Pension” announced on Tuesday the sale of its US Treasury holdings. However, the Danish fund confirmed its decision was unrelated to the issue concerning Greenland, linking it instead to the deteriorating financial situation of the US government.
For his part, US Treasury Secretary Scott Bissett this week dismissed the idea that Europeans are targeting US debt in response to Washington’s plans regarding Greenland.
Donald Trump
Donald Trump is a businessman and television personality who served as the 45th President of the United States from 2017 to 2021. His presidency was marked by a populist and unconventional political style, significant tax reforms, and a focus on immigration restriction and “America First” foreign policy.
United States
The United States is a federal republic founded in 1776 after declaring independence from Great Britain, establishing itself through a revolutionary war and the ratification of its Constitution in 1789. It grew from thirteen original colonies into a global superpower, with a history shaped by westward expansion, industrialization, and significant internal conflicts such as the Civil War. Its diverse culture is a product of immigration and its influential roles in global politics, economics, and technology throughout the 20th and 21st centuries.
Washington
Washington, D.C., the capital of the United States, was founded in 1790 following the Residence Act and named after the first U.S. president, George Washington. It is a planned city, distinct from any state, and is renowned for its iconic national monuments, museums, and federal buildings, including the White House, the U.S. Capitol, and the Smithsonian Institution.
Europe
Europe is a continent with a rich and complex history, shaped by ancient civilizations like Greece and Rome, the Middle Ages, the Renaissance, and periods of both conflict and cooperation. It is home to countless cultural sites, from prehistoric cave paintings to grand cathedrals and castles, reflecting its diverse artistic and architectural heritage. The modern political and economic entity of the European Union emerged in the latter 20th century as a project to foster unity and peace among its nations.
Greenland
Greenland is the world’s largest island, located in the North Atlantic, with a history of Inuit habitation for over 4,500 years. It was later settled by Norse Vikings in the 10th century before coming under Danish rule in the 18th century, and it is now an autonomous territory within the Kingdom of Denmark.
Denmark
Denmark is a Scandinavian country in Northern Europe with a rich history dating back to the Viking Age, when it was a major seafaring power. Today, it is a modern constitutional monarchy known for its design, social welfare model, and historical landmarks like Kronborg Castle, the setting of Shakespeare’s *Hamlet*.
Russia
Russia is the world’s largest country by area, spanning Eastern Europe and Northern Asia. Its history is marked by the rise and fall of the Kievan Rus’, the Tsardom of Russia, the Russian Empire, the Soviet Union, and the modern Russian Federation established in 1991. It is renowned for its vast landscapes, rich cultural heritage in literature, music, and art, and influential historical figures.
China
China is one of the world’s oldest continuous civilizations, with a recorded history spanning over four millennia. It is home to numerous UNESCO World Heritage sites, such as the Great Wall and the Forbidden City, which reflect its long imperial past and profound cultural achievements.
NATO
NATO, or the North Atlantic Treaty Organization, is a military alliance established in 1949 by the United States, Canada, and several Western European nations to provide collective security against the Soviet Union during the Cold War. Its foundational principle is Article 5, which states that an attack on one member is considered an attack on all. Following the Cold War, NATO has expanded eastward and adapted its missions to include crisis management and counter-terrorism operations.
Canada
Canada is a country in North America formed through the union of British and French colonial territories, becoming a self-governing dominion in 1867. It is known for its vast natural landscapes, multicultural society, and a historical development deeply shaped by Indigenous peoples, colonization, and subsequent immigration.
Swedish pension fund Alecta
Alecta is a Swedish occupational pension fund, historically formed through mergers of several pension institutions dating back to the early 20th century. It is one of Sweden’s largest pension companies, managing mandatory occupational pensions for primarily private-sector employees.
Danish Akademiker Pension
Danish Akademiker Pension is a labor-market pension fund established in Denmark in 1993, created through a collective agreement to provide pension schemes for academics and other professional staff in the public and private sectors. It is known for its responsible investment strategy and has grown to become one of Denmark’s larger pension companies, managing the retirement savings for members from universities, research institutions, and various professional organizations.
Scott Bissett
Scott Bissett is not a recognized place or cultural site. It appears to be a personal name, likely of an individual, and therefore does not have a history or description as a location.
US Treasury bonds
US Treasury bonds are debt securities issued by the U.S. Department of the Treasury to finance government spending, with a history dating back to the funding of the American Revolutionary War. They are considered one of the world’s safest investments, backed by the full faith and credit of the U.S. government.
Fox Business
Fox Business is an American cable television network launched in 2007 by Rupert Murdoch’s Fox Corporation as a financial news competitor to CNBC. It provides business news and market coverage, often featuring commentary and programming aligned with conservative economic perspectives.
