Europe Eyes 'Capital Weapon' As Trump Doubles Down On Greenland

(MENAFN- Investor Ideas) Investorideas ( Newswire) a go-to platform for big investing ideas, including crypto stocks issues market commentary from deVere Group.

Europe's consideration of using capital markets as retaliation against President Trump over Greenland would trigger financial disruption far exceeding the impact of tariffs, warns the CEO of global financial advisory giant deVere Group.

Nigel Green's warning comes as the European Union is reportedly weighing deployment of its Anti-Coercion Instrument while preparing up to €93 billion in retaliatory tariffs against the US.

The measures would follow Trump's warning that tariffs could rise to 25% unless Europe agreed to a deal involving Greenland.

Trump's appearance at the World Economic Forum in Davos tomorrow is likely to place the dispute at the centre of a summit normally designed to project stability. Instead, trade, geopolitics, and financial leverage is expected to dominate discussions.

Overnight, Trump posted on Truth Social an AI-generated image of himself alongside Vice President JD Vance and Secretary of State Marco Rubio in the Oval Office, with Greenland, Canada, and Venezuela shown beneath the Stars and Stripes.

Nigel Green, CEO of deVere Group, says:

Europe would hold substantial theoretical leverage. European countries would collectively own around $8 trillion of US bonds and equities, making them America's largest external financiers.

NATO allies alone would hold close to $3 trillion in US Treasuries.

However, he warns that leverage would come with severe limitations.

Europe would also face a structural problem. There would likely be no credible alternative destination for capital on the scale required to materially reduce US exposure. Asian markets would lack sufficient depth. Global portfolios could be expected to remain anchored to US assets because of liquidity, legal certainty, and scale.

The Anti-Coercion Instrument itself would amplify uncertainty. It's never been used. Its procedural timelines would risk prolonging instability rather than delivering resolution.

Trump's current posturing would suggest little appetite for retreat. His Davos attendance is likely to coincide with an increasingly forceful public stance rather than compromise.

deVere concludes that while the risks of deploying capital-based measures would be significant for Europe, the more important signal lies in the fact that such options would now be openly discussed.

The Greenland dispute would therefore mark a shift in how far Europe might be prepared to go.

The deVere CEO concludes:

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