European capitals are reportedly weighing an unprecedented financial countermeasure against the United States as Donald Trump pushes for a rapid peace deal with Russia—one that many EU leaders believe could compromise the continent’s security.
According to internal assessments shared among Western intelligence circles, senior European officials are discussing the possibility of dumping more than $2.34 trillion in U.S. government debt if Trump abandons Ukraine or attempts to force Kyiv into a settlement seen as dangerous for European interests.
The discussions follow a new round of high-stakes negotiations held in Miami, where Secretary of State Marco Rubio, Trump’s Russia envoy Steve Witkoff, and presidential son-in-law Jared Kushner met Ukrainian representatives. After the meeting, Trump described the talks as “fragile,” but insisted there was “a good chance we can make a deal.”
For Europe, that statement triggered alarm—not because of peace itself, but because of the terms under which such a deal might be struck.
Europe Fears a “Trump-Putin Understanding” Behind Closed Doors
The Wall Street Journal has reportedly seen intelligence assessments circulated by a major European agency outlining concerns about private U.S.–Russia “commercial and economic” discussions occurring parallel to the peace talks. To European policymakers, this suggests the Trump administration might be willing to recalibrate alliances and reshape strategic priorities in ways that leave NATO exposed.
European leaders already distrust Trump’s long-established skepticism of NATO, his demands for Europe to “pay up,” and his public suggestion that he might not defend nations he sees as “delinquent.” Now, with Ukraine’s fate hanging in the balance, fears of a geopolitical realignment have intensified.
If the U.S. is perceived to be trading European security for economic opportunity with Russia, insiders say Europe will not sit quietly.
The Financial “Nuclear Option”: Dumping U.S. Treasuries
European governments collectively hold enormous leverage through their holdings of U.S. Treasury securities:
United Kingdom: ~$722.7 billion, EU member states combined: ~$1.62 trillion, Total: ~$2.34 trillion
This makes the EU-UK bloc one of the world’s largest single holders of American debt.
The idea being discussed—at least theoretically—is to rapidly liquidate a significant portion of these bonds, triggering:
A collapse in the value of the U.S. dollar, massive spikes in American borrowing costs, Liquidity shortages across U.S. banks, and Potential inflationary pressure
A financial crisis “worse than 2008,” according to one European economist quoted anonymously
While such a move would also hurt European economies, officials believe the geopolitical stakes may justify exploring even extreme options.
This is not a threat Europe is eager to deploy; it is a threat meant to prevent a policy catastrophe rather than cause an economic one.
Why is Europe so Alarmed?
For Europe, Ukraine is not merely a diplomatic issue—it is a buffer, a frontline, and a symbol of the continent’s post-Cold War order. A settlement that legitimizes Russian territorial gains or weakens Ukraine’s independence could reshape Europe’s security architecture for decades.
European leaders see several dangers:
A weakened Ukraine could embolden Russia, potentially threatening NATO’s eastern flank.
A hasty U.S.-brokered deal could leave European interests ignored, pushing the EU into a defensive geopolitical posture.
A divergence between Washington and Brussels on Russia could fracture NATO’s cohesion.
Economic deals between Trump and Putin, if verified, would mark a historic shift in Western unity.
For the first time in decades, European strategists are openly contemplating tools that could challenge U.S. financial hegemony—the very foundation of American global power.
Trump Faces Domestic and Global Pressure
Trump’s negotiating team is under significant scrutiny as domestic midterm elections approach. Economic turbulence triggered by foreign sell-offs would be politically catastrophic. Even the threat of coordinated European action could rattle markets and weaken Trump’s leverage.
Meanwhile, Ukraine remains deeply anxious. Kyiv fears a deal that forces unfavorable concessions, particularly if U.S. support is conditioned on a rapid peace at any cost.
Europe, too, sees the window narrowing. If Trump’s approach is indeed tilting toward Moscow, the continent must either adapt—or resist.
A New Transatlantic Rift Emerging
In the broader picture, this showdown signals a deeper problem:
Europe no longer fully trusts Washington.
What was once a rock-solid alliance forged in World War II and the Cold War is now showing structural cracks. From Trump’s NATO skepticism to European flirtations with “strategic autonomy,” the transatlantic order is entering a period of unprecedented strain.
Whether Europe actually executes the financial “nuclear option” remains to be seen. But the fact that it’s even under discussion highlights how dramatically U.S.–EU relations have deteriorated—and how high the stakes are as the Ukraine war approaches a turning point.
One thing is certain: the next few months will determine not just the future of Ukraine, but the future of the global order itself.