Trump warns of retaliation if Europe sells US assets over tariffs

Investing.com -- President Donald Trump threatened "big retaliation" against European countries if they sell US assets in response to his tariff threats.

"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’s comments come as Danish pension fund AkademikerPension plans to sell all its US Treasury holdings by the end of January, citing credit risks associated with Trump’s policies.

"The US is basically not a good credit and long-term the US government finances are not sustainable," said Anders Schelde, chief investment officer at AkademikerPension.

The fund, which manages approximately $25 billion in savings for teachers and academics, currently holds about $100 million in US Treasuries as of the end of 2025.

Greenland’s SISA Pension has also indicated it is considering whether to continue investing in US stocks.

Trump’s now-abandoned threat to increase tariffs on goods from eight European nations as he sought control of Greenland sparked speculation that Europe might dump trillions of dollars in US bonds and stocks as a countermeasure.

However, implementing the strategy would likely be complicated. Most assets are held by private funds outside government control, though some large holders like Norway’s sovereign wealth fund could impact US capital markets with a selloff.

US Treasury Secretary Scott Bessent earlier this week downplayed the Danish pension fund’s planned sale, saying he was "not concerned at all."

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