Trump warns of retaliation if Europe dumps US stocks and bonds

DAVOS, SWITZERLAND: President Donald Trump on Thursday, January 22, warned that the US would retaliate if European countries sell US stocks and bonds in response to his push to acquire Greenland and his broader pressure campaign on NATO allies.

Asked during an interview with Fox Business’ Maria Bartiromo whether he was concerned about potential European sell-offs of US assets, Trump said such a move would trigger a strong response.

“If that would happen, there would be, you know, big retaliation on our part,” Trump said, adding, “We have all the cards.”

Denmark’s treasury holdings in focus

The comments followed remarks on Wednesday by Treasury Secretary Scott Bessent, who said that Denmark and its investments in the United States are “irrelevant,” after a Danish pension fund announced plans to unwind about $100 million in US government bonds, citing “poor government finances.”

While the $100 million figure represents a negligible share of the $30.8 trillion US Treasury market, Denmark as a country holds just under $10 billion in US bonds. That exposure has steadily declined in recent years, down from nearly $18 billion in 2021.

Denmark retains territorial control over Greenland, which has been at the center of Trump’s recent disputes with European allies.

Trump presses defense firms to deliver faster

In the same interview, Trump praised US weapons systems as the “best in the world,” while urging defense companies to accelerate production.

“We have the best equipment in the world, the Patriots, Tomahawks, the F-35s,” Trump said. “Other countries want it, and we want it. We need more. It takes too long to get it.”

“We have to make it faster,” he added.

Earlier this month, Trump warned defense contractors that he would seek to limit stock buybacks and executive compensation unless they improved delivery timelines for weapons systems ordered by the US military.

Trump speaks about the midterm elections

Trump also acknowledged that Republicans could face headwinds in the upcoming midterm elections, noting the historical pattern of the president’s party losing seats.

“There’s something psychological that if you’re president, no matter how well you’re doing, you don’t do well in the midterms,” he said. “We should do well. And we’re going to fight like hell to do well.”

With another government funding deadline approaching, Trump said a shutdown was likely and blamed Democrats for the impasse.

“I think we have a problem,” he said. “I think we’ll probably end up in another Democratic shutdown.”

Trump said that he would like to advance a reconciliation package but acknowledged the difficulty of passing a budget with a narrow Republican majority in the House.

“It’s hard when you have a majority by three,” he said, singling out Republican Reps Thomas Massie and Rand Paul, who have previously broken with the party on major votes.

The president made the remarks while attending the World Economic Forum in Davos, where economic pressure, defense production and US relations with Europe dominated his public messaging.