Europe Prepares to Release 10.4 Trillion Dollars to Face the Trade War

MetaverseLandlord · 2026-02-09T15:05:49+00:00

A rare financial confrontation is emerging as Europe holds significant U.S. assets totaling $10.4 trillion. With U.S. tariffs rising under Trump, the timing of potential asset liquidation raises concerns about its impact on American markets and global financial stability. Major investment funds are shifting focus to European and Asian markets, citing poor U.S. performance. If Europe sells off these assets, it could trigger market reactions and affect investments in commodities like gold and Bitcoin. Investors must carefully monitor market signals and the implications of asset reallocations.

MetaverseLandlord

2026-02-09 15:05:49

Abstract generation in progress

A rare financial confrontation is gradually taking shape on the international stage. As Trump continuously raises tariffs to exert pressure, Europe holds a giant trump card — approximately $10.4 trillion in US assets. The question is not whether they have the courage, but when the decision to unload these assets will happen, and what impacts the US market will face.

Europe’s Trump Card: Valued US Assets at a Massive Scale

This is not just a threat; this financial power is a reality. Europe currently holds a large amount of US Treasury bonds, forming a “weak spot” for US debt costs. If this continent decides to sell off these assets, the US borrowing costs could spike rapidly, causing unpredictable consequences for the world’s largest economy.

Investment Funds Are Restructuring Their Portfolios

Notably, major investment funds like Amundi and AkademikerPension are not just concerned—they have already begun taking action. These organizations are actively selling US assets to shift toward European and Asian markets. The reason is clear when looking at last year’s performance: the US S&P 500 has significantly underperformed compared to Europe’s Stoxx 600 and Korea’s Kospi. The yield gap has driven a wave of global capital reallocation.

Chain Reaction Could Devastate the Markets

Financial markets always fear instability and unexpected moves. Only recent aggressive statements caused the S&P 500 to plunge 2.1%. Imagine when a real sell-off wave occurs — it’s not just stocks being dumped, but the effects will spread across all markets. PAXG (gold price) is currently at $5.05K, BTC is trading at $69.21K, and both could experience sharp volatility if global capital flows are disrupted.

Is This Just a Windfall or a Real Threat?

The key question for any savvy investor is: should they evacuate US assets for safer havens, or is this just a political windfall game? The answer is not a simple “yes or no,” but depends on investors closely monitoring market signals, bond sell-off volumes, and international capital flows. These are just considerations, not professional investment advice. You should conduct thorough research before making decisions for your portfolio.

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