President Trump has warned that there will be significant consequences if European countries decide to sell U.S. assets.
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“If they do, they do. But you know, if that would happen, there would be a big retaliation on our part,” Trump told Fox Business on Thursday at the World Economic Forum in Davos, Switzerland. “And we have all the cards.”
Europe Holds Major Foreign Share of U.S. Treasuries
Europe was the largest buyer of U.S. Treasuries from April to November 2025 and was responsible for about 80% of U.S. foreign debt purchases during that period, according to Citi (C). In total, European countries own almost 40% of U.S. Treasuries held by foreign countries.
Earlier this week, Danish pension operator AkademikerPension announced that it would sell its entire stake of U.S. Treasuries worth around $100 million, citing “poor government finances.” That comes after credit rating agency Moody’s (MCO) lowered the U.S. sovereign credit rating to Aa1, the second-highest rating, from Aaa last May.