Dollar and Treasuries Face "Sell America" Backlash Amid Eroding Trust

Global investors are increasingly questioning the safety of U.S. assets, sparking a “Sell America” narrative that threatens the dollar’s reserve status and Treasury demand. The shift stems from policy uncertainty under President Trump, including April 2025’s “Liberation Day” tariffs and January 2026 remarks about acquiring Greenland, which fueled concerns over U.S. reliability. Moody’s downgrade of America’s last AAA credit rating in May 2025—citing unsustainable deficits—pushed 30-year Treasury yields above 5%. Denmark’s AkademikerPension sold $100 million in Treasuries, while Dutch fund PME reduced U.S. exposure, pivoting to European tech. The dollar has fallen nearly 10% since Trump’s return to office, nearing 2022 lows. Yet alternatives remain limited: U.S. equity growth, AI dominance, and unmatched market depth still anchor global capital flows despite rising risks.