EUROPE’S $10 TRILLION US ASSET “WEAPON” IS HARD TO WIELD As tensions rise over Greenland and Trump’s trade threats, European policymakers face speculation about using their $10 trillion in U.S. assets—bonds and equities—as leverage. Selling could push U.S. borrowing costs higher and hit markets, but most holdings are private, and any move would also hurt European investors. Strategists see a low chance of such extreme action, though the mere discussion highlights a growing tail risk. So far, the EU’s response is limited to delaying a trade deal and considering tariffs on $108 billion of U.S. goods. Analysts note that while Europe could theoretically pressure the U.S., actual weaponization of assets would be costly and disruptive for both sides.(*Walter Bloomberg)