Greenland relief

Was it a negotiation tactic? Another TACO ( Trump Always Chickens Out ) move? Markets certainly took President Trump’s latest comments that way and looked relieved. The chart is a useful reminder of the broader backdrop: Europe holds close to $3.6 trillion of US Treasuries — nearly 40% of all foreign-held Treasuries. This matters, but two conclusions are clear. For the US, repeatedly weaponizing tariff threats against allies becomes harder with each round as credibility erodes and counterparts adapt. For Europe, the idea of weaponizing Treasury holdings is largely illusory: most exposure sits in private hands, and in an interconnected financial system any attempt to disrupt the Treasury market would likely create substantial collateral damage for Europeans themselves. Our best defence remains to stand together as a European Union and speak with one voice — unfortunately, politically, we may still be far from that.