Trump and Europe in Hardline Standoff... Denmark to Sell U.S. Treasuries

Denmark’s Pension Fund to Sell $1.48 Billion in U.S. Treasuries
Trump’s Tariff Threat Escalates Tensions
Macron Criticizes “Disregard for International Law, Lawless World”

As tensions escalate between the United States and Europe over Greenland, Denmark’s pension fund has decided to liquidate all of its holdings in U.S. Treasury bonds. The move is interpreted as being partially influenced by President Donald Trump’s pressure to annex Greenland. As President Trump remains steadfast in his goal to dominate Greenland, European leaders are intensifying their criticism, maintaining a hardline standoff.

An image posted by Donald Trump, President of the United States, on his Truth Social.

Denmark’s Pension Fund to Sell U.S. Treasuries... Greenland Issue a Contributing Factor

According to Bloomberg and other foreign media on January 20 (local time), Denmark’s pension fund AkademikerPension announced plans to sell its entire holdings of U.S. Treasury bonds, amounting to approximately 100 million dollars (about 148 billion won), by the end of this month. AkademikerPension explained that the decision was prompted by concerns over the vulnerability of the U.S. government’s finances. The fund manages around 25 billion dollars (about 37 trillion won) in retirement assets for teachers and academics.

Chief Investment Officer Anders Schelde stated, “Fundamentally, the United States cannot be considered a highly creditworthy country, and the U.S. government’s finances are not sustainable in the long term.”

Schelde emphasized that the decision to sell was not directly related to U.S. pressure to annex Greenland. “This decision is not directly connected to the conflict between the United States and Europe,” he said.

However, he added, “That said, I cannot say that recent geopolitical developments did not make the decision more difficult,” suggesting that President Trump’s pressure regarding Greenland was also an indirect consideration.

While President Trump’s determination to annex Greenland remains unshaken, the Greenlandic government is preparing for a range of scenarios, including the possibility of U.S. military intervention.

On this day, Greenland’s Prime Minister Jens-Frederik Nielsen held a press conference in the capital city of Nuuk, stating, “I do not believe there is a high probability that the United States will actually annex Greenland by force,” but added, “We must be prepared for all possibilities.”

Prime Minister Nielsen assessed that the likelihood of President Trump mobilizing military force, as he has threatened, is low, but nonetheless emphasized, “We must be ready for any situation.” He explained that a dedicated response team composed of representatives from all local authorities would be established to prepare for potential disruptions to citizens’ daily lives.

A hat engraved with the phrase "Make America Go Away." Photo by Reuters Yonhap News Agency

Trump Reiterates Determination to Annex Greenland... Europe Calls It “Neo-Colonialism”

Despite backlash from world leaders, President Trump continues to unabashedly promote his plan to annex Greenland. On this day, President Trump posted a virtual image on his social media platform, Truth Social, depicting himself holding a large American flag over the area marked as Greenland.

At a press conference marking his first year in office, he again asserted the necessity of annexing Greenland, stating, “It is extremely important not only for national security but also for global security.” When asked how far he was willing to go to take control of Greenland, he simply replied, “You’ll see.”

The New York Times noted, “President Trump is constantly escalating tensions with America’s long-standing allies,” adding, “He responds to diplomatic proposals with online posts bordering on mockery, while simultaneously imposing economic tariffs and threatening territorial expansion.”

European countries are also raising the level of criticism against President Trump’s unilateral actions. French President Emmanuel Macron, in a speech at the World Economic Forum (WEF) in Davos, Switzerland, said, “We are heading toward a lawless world where international law is ignored,” and criticized the resurgence of “imperial ambitions” in various places. He pointed out that the United States is “using unacceptable tariffs as leverage to pressure territorial sovereignty.”

Canadian Prime Minister Mark Carney also expressed concern about America’s unilateral actions, stating, “We are not simply going through a transition period, but are in the midst of a rupture.” British Prime Minister Keir Starmer, who has typically used cautious language regarding President Trump, also called the U.S. tariffs “the wrong measure.”

This comes in response to President Trump’s warning that, following the deployment of solidarity troops to Greenland by eight European countries including France, the United States would impose a 10% tariff on these countries starting next month.

Ursula von der Leyen, President of the European Commission, criticized President Trump’s threat to impose a 10% tariff on the eight countries as “a clear mistake.”

She indirectly pointed out that such measures could undermine President Trump’s credibility, emphasizing, “The European Union and the United States signed a trade agreement last July.” She added, “Whether in politics or business, an agreement is an agreement, and a handshake between friends carries clear meaning.”

With the United States’ unilateral move to annex Greenland raising the possibility of a full-scale trade war between the United States and Europe, a sense of crisis is mounting. The Guardian reported, “European leaders are condemning President Trump’s ‘neo-colonialism’ and warning that the European continent is at a critical crossroads in response to President Trump’s statement that he will not withdraw his goal of dominating Greenland.”