Europe can wield this $8 trillion 'sell America' weapon as Trump reignites a trade war over his Greenland... [View all]
Trump will TACO, I guarantee it! Snip: “European countries own $8 trillion of US bonds and equities, almost twice as much as the rest of the world combined,” Saravelos pointed out. “In an environment where the geoeconomic stability of the western alliance is being disrupted existentially, it is not clear why Europeans would be as willing to play this part.”
Fortune Magazine: Europe can wield this $8 trillion ‘sell America’ weapon as Trump reignites a trade war over his Greenland conquest ambitions
By Jason Ma
Weekend Editor
January 18, 2026, 12:44 PM ET
As the European Union weighs options to retaliate against President Donald Trump’s latest tariffs, its most potent weapon may be in financial markets.
France is already urging the EU to deploy its “anti-coercion instrument,” which can target foreign direct investment and finance as well as trade. That’s after Trump announced new U.S. tariffs on NATO countries that sent troops to Greenland amid his plans to take over the semi-autonomous Danish territory.
At face value, a 10% tariff rising to 25% would have minimal economic consequences, Capital Economics chief economist Neil Shearing said in a note Sunday, estimating they would reduce GDP in the targeted NATO economies by 0.1-0.3 percentage points and add 0.1-0.2 points to U.S. inflation.
“The political ramifications would be far greater than the economic ones,” he warned, with any attempt by the U.S. to seize Greenland by force or coercion potentially leading to irreparable harm to NATO.
So far, European officials have signaled Greenland’s sovereignty is a red line that’s not up for compromise, while the Trump administration isn’t budging either on its stance
More: https://fortune.com/2026/01/18/europe-retaliation-8-trillion-sell-america-us-debt-bonds-stocks-trade-war-greenland-trump/
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