Russia-Ukraine peace deal: Following the meeting between American and Ukrainian representatives in Miami on November 30, 2025, EU countries are feeling uneasy. According to reports published by the Indian Express and The Economic Times, European countries are in fear that US President Donald Trump is not addressing the EU’s interests while pursuing the peace talks to end the Russia-Ukraine war. These reports further claim that EU countries are mulling the exercise of financial leverage against the US if US President Donald Trump continues to ignore the EU countries’ interests in the Russia-Ukraine peace deal.
According to market experts, the anger of EU countries towards US President Donald Trump is justified if he moves unilaterally on the Russia-Ukraine peace deal, leaving the interests of EU countries at bay. However, they maintained that Donald Trump can’t ignore the interests of EU countries, as EU countries may use financial leverage against Trump. Donald Trump used financial leverage while imposing tariffs on the US trade partners. Now, it’s the EU countries’ turn. They are holding around $2.34 trillion of US Treasuries, which they might start selling in a co-ordinated manner. This will put a massive shock on the US economy, which is already facing the challenge of a financial crisis. Experts believe that EU countries’ US bond holdings will be more significant than those during the 2008 financial crisis, which was triggered by the collapse of Lehman Brothers.
What does the financial leverage of EU countries mean for the US?
Speaking on the impact of EU countries’ financial leverage on the US, Anuj Gupta, Director at Ya Wealth, said, “EU countries together hold around 2.34 trillion US Treasuries. If they sell those US bonds in a co-ordinated manner, then demand for US Treasuries will increase, and US Treasury yields will rise, leading to more pressure on the US Dollar and the US debt. This may also trigger US bond selling in other parts of the world, potentially leading to a more severe financial crisis than the 2008 financial slowdown caused by the Lehman Brothers fiasco. So, Trump has no option but to address EU countries’ concerns while clinching a peace deal in the Russia-Ukraine war.”
On the counter tariff that EU countries also have, Sandeep Pandey, Co-founder of Basav Capital, said, “There are two types of players in this Russia-Ukraine peace deal — de jure and de facto. Russia and Ukraine are at loggerheads, and hence they are de jure players in these peace talks. EU can also be taken as a de jure player in this deal, as Ukraine losing some of its land to Russia would mean a direct threat to some EU countries. However, the US is a de facto player as it is part of NATO, and the majority of the EU countries are also NATO members. The financial leverage is highly aggressive. The US administration can’t even face the EU countries’ counter-tariff shock as they are already facing the debt payment challenge due to the rise in the US Treasuries yield from 2 to 2.50% to over 5%.”
“It is more of a bargaining tactic that Donald Trump is following. He is trying to keep the number of stakeholders limited at the initial level of the Russia-Ukraine peace talks. He may sit with the NATO members once a consensus is reached between the Russian and Ukrainian representatives. As the process is looking long-lasting, which the EU countries are well aware of, both de jure and de facto players are cleverly playing their cards,” said Sandeep Pandey.
Details of US Treasures held by EU countries
According to an Indian Express report, the leverage European nations hold is substantial. As of December 2024, the United Kingdom has an estimated $722.7 billion in US debt, while European Union member states collectively hold about $1.62 trillion. Together, the EU and UK control roughly $2.34 trillion in US Treasuries, making the bloc one of the largest foreign holders of American debt.
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