US President Donald Trump, in his first major international address since returning to the White House, emphasized that there would be no changes to his trade, defense, and global diplomacy policies in his second term. In a video conference speech at the World Economic Forum’s Davos Summit, he issued a stern warning to European allies to increase their defense spending. Additionally, he committed to raising tariffs to protect U.S. industries and argued that lowering oil prices has the potential to end the conflict in Ukraine.
Trump has also taken a hard stance in trade relations with the European Union, describing the EU as a partner engaging in unequal trade with the US and stating that this relationship needs to be corrected. Stating that the trade deficit between the US and the EU is at the level of 350 billion dollars, Trump emphasized that closing this deficit would only be possible if EU countries buy more oil and natural gas from the US. Additionally, criticizing the EU for not purchasing U.S. agricultural products and not importing U.S. vehicles, Trump suggested that either increasing tariffs or boosting the EU’s purchases of U.S. energy resources would be necessary to resolve this situation. This approach indicates that Trump has adopted a more aggressive trade strategy towards Europe and is focused on taking a more protectionist stance in trade relations in line with national interests.
Trump, in his speech, gave a clear message regarding trade policies, demanding that production processes be carried out within the United States. In this context, Trump stated that he would offer companies the opportunity to benefit from the lowest taxes if they conduct their production activities in the U.S. This proposal once again emphasizes Trump’s view that domestic production should be supported and the American workforce should be prioritized, which he advocated during his previous administration. However, Trump has warned that companies preferring to manufacture in countries outside the U.S. will face high customs duties. With this warning, Trump aimed to promote domestic production and employment, expressing his concerns about global supply chains and dependency on foreign countries. Additionally, he argued that companies conducting their production activities abroad harm the U.S. economy and hinder the development of the domestic workforce. In this context, the policies proposed by Trump are seen as a critical step towards economic independence and the strengthening of domestic industry. With the high customs duties implemented, the aim was to make production based on external resources more expensive compared to domestic production, thereby providing more opportunities for the American workforce. In addition, Trump has harshly criticized the European Union. He has stated that the bureaucratic barriers of the EU pose an obstacle to investments and, by giving examples from his own business experience, mentioned that the approval processes in Europe take much longer than those in the US. Trump, while criticizing the EU’s trade policies, emphasized that Europe does not buy U.S. agricultural products, does not import U.S. vehicles, but sends millions of vehicles to the U.S. He has considered this situation as an example of imbalanced trade relations and stated that the EU’s customs tariffs and trade restrictions have exacerbated this situation. Trump’s statements are particularly increasing the likelihood of a new trade conflict between the US and the EU. The resurgence of tariff disputes that occurred during his first term indicates that this process could reignite.
Additionally, Trump has come to the forefront with an important demand regarding NATO in his speech in Davos. He stated that NATO members’ commitment to allocate 2% of their Gross Domestic Product (GDP) to defense spending is insufficient and proposed increasing this rate to 5%. This proposal aims to increase the U.S. share of global defense spending and ensure that NATO members take on more responsibility. However, considering the internal political resistance shown by many European countries against current military budget increases, it is quite likely that this proposal will lead to discussions within NATO. European countries, while concerned that increasing defense spending would create economic and social challenges, believe that Trump’s proposal could impose a serious political and financial burden, especially on countries struggling with budget constraints. Therefore, such a demand could reshape the power dynamics within NATO and the alliance’s future strategic orientations. Additionally, Trump’s proposal aims to strengthen the U.S. leadership role within NATO and to compel other members, particularly European countries, to provide greater financial contributions.
