Europe can wield this $8 trillion ‘sell America’ weapon as Trump reignites a trade war over his Greenland conquest ambitions

Group 1 - The European Union is considering using its "anti-coercion instrument" to target foreign direct investment and finance in response to U.S. tariffs imposed by President Trump [1] - A 10% tariff rising to 25% is estimated to reduce GDP in targeted NATO economies by 0.1-0.3 percentage points and add 0.1-0.2 points to U.S. inflation, with political ramifications being more significant than economic ones [2] - European officials have firmly stated that Greenland's sovereignty is non-negotiable, while the U.S. remains steadfast in its position [3] Group 2 - Europe holds a significant amount of U.S. Treasuries, which helps balance America's external deficits, making it the largest lender to the U.S. [4] - European countries own $8 trillion of U.S. bonds and equities, nearly double the amount held by the rest of the world combined, raising questions about their willingness to continue this support amid geopolitical tensions [5] - Danish pension funds have begun reducing their dollar exposure and repatriating funds in response to concerns over U.S. trade policies, indicating a shift in investment strategy [6][7] Group 3 - The euro and Danish krone are expected to experience minimal impact from the fallout of Trump's tariffs and any potential retaliation [8]