Trump Warns Europe of Retaliation Over Potential US Asset Dump

Former President Donald TRUMP issued a stark warning to European nations during an interview on Fox Business at the World Economic Forum. His comments came amid growing speculation that Europe might liquidate U.S. financial assets in response to tariff pressures. "If they do, they do. But you know, if that were to happen, there would be a big retaliation on our part," Trump said. "And we have all the cards." The remarks followed a since-abandoned plan to impose tariffs on eight European countries, initially aimed at leveraging concessions over Greenland.

Market sentiment soured as investors weighed the possibility of Europe offloading trillions in U.S. bonds and equities. A tentative agreement to pause new tariffs—contingent on U.S. missile deployments in Greenland and restrictions on Chinese mineral interests—partially stabilized nerves. Yet the episode underscored how geopolitical brinksmanship can roil global markets with little warning.