The dispute between the US and Europe over Greenland escalates, and Deutsche Bank warns that US bondholders face the risk of sanctions

Analysts at Deutsche Bank have stated that the escalating tensions between the U.S. and Europe, surrounding President Trump’s claim to acquire Greenland, have increased the risk of sanctions, which could affect U.S. Treasury holders in the EU.

Imposing sanctions on European countries would mean a severe and unexpected escalation in U.S. economic foreign policy. No sanctions measures have been proposed yet, and relevant officials still hold hope for a compromise. However, the fact that analysts have begun discussing this possibility indicates that the deterioration of transatlantic relations is already creating tail risks