Brussels is preparing for tough talks with US President Donald Trump on trade issues. Despite putting on a stoic front, many are still worried, even though some EU member states are trying to see the bright side of the situation, writes the European Newsroom - a platform for cooperation between 23 European news agencies, including BTA.
US President Donald Trump has harsh words for the European Union on Thursday during his first major speech to a global audience since beginning of his second term in the White House. This has heightened concerns in Brussels about the future of EU-US relations.
"We have a hundreds of billions of dollars (trade) deficit with the EU and nobody is happy about it and we are going to do something" to solve it, Trump said by video link from Washington.
In a nearly hour-long address to business and political leaders gathered at the World Economic Forum in Davos, Switzerland, Trump said the United States was being treated "very unfairly" and "very badly" by the 27-nation bloc because of Brussels' trade and business rules.
Trump said he would not tolerate the US trade deficit with the EU. He also accused the EU of refusing to buy US agricultural products and cars. The US president also expressed his dissatisfaction that Europe is not buying enough American oil and gas.
During his election campaign, Trump mentioned his plans to introduce new tariffs of 10 to 20 percent on imports from the EU, saying that they would stimulate local industry and solve the problem of the trade deficit.
During Trump's first term, a bitter trade dispute between the US and the EU came to a head.
In 2018, Trump imposed tariffs on steel and aluminum imports, which prompted the EU to respond with tariffs on American products such as bourbon, Harley-Davidson motorcycles, and (Harley-Davidson) and jeans.
In her speech in Davos on Tuesday, European Commission President Ursula von der Leyen said the EU was ready to talk to Trump and that "the bloc's first priority will be to engage early, to discuss common interests and to be ready for negotiations".
"We will be pragmatic, but we will always stand by our principles. To defend our interests and to stand by our values," she added.
Overall, the European Commission President struck a conciliatory tone in her speech, without directly addressing the US president.
However, she stressed that the world was entering a "new era of fierce geostrategic competition" and that the EU will seek to improve its relations with China and other countries such as India as global competition intensifies.
The EC President also cited as successes for European policy the recent conclusion of negotiations with the four countries of the Latin American trade bloc Mercosur, as well as with Mexico and Switzerland.
Trump threatens tariffs
Trump's return to the White House has raised concerns that he will follow through on his promises to impose heavy tariffs on China and US allies, including Canada and the EU.
In his speech to the Davos forum, the US president reiterated his earlier promise, after taking the oath, to impose tariffs on the EU, citing the need to correct the EU's trade imbalances with the US and highlighting the €350 billion trade deficit. dollars with the bloc.
However, the European Commission rejected the US president's claims of a $350 billion deficit with the EU.
A spokesman for the EC said that such a deficit does not exist, and that the US and the EU have complementary strengths. "We have a surplus in trade in goods, the US has a surplus in trade in services," he added.
According to EU data, in 2023 the US exported goods worth €347.1 billion to the EU, while the EU exported goods worth €503.8 billion to the US.
In the same year, the spokesman said, US exports of services to the EU amounted to €396.4 billion, compared with €292.4 billion. euro in the opposite direction.
A Commission spokesman said the bloc intended to work constructively with the new US administration but was ready to defend its legitimate interests if necessary.
No panic
Trade concerns have been a recurring theme for the EU in the first week of Trump's term, with Brussels adopting a mantra of calm and measured approach.
European Commission Executive Vice-President Teresa Ribera said the bloc "prefers to avoid confrontation" at a conference in the Belgian capital organised by the New Economy Forum research network. The EU "must keep its cool", Ribera said.
"It doesn't seem very appropriate to think that the best response to a provocation is to escalate provocations", she added.
Defense and energy have quickly emerged as areas where the EU wants to improve its relations with the US under the Trump administration and thus offset the causes of disputes in trade relations.
Congratulating Trump on the start of his new term, Croatian Prime Minister Andrej Plenković pledged stronger cooperation between Croatia and the US in both the military and energy sectors.
"We look forward to working with President Trump and his administration to further strengthen our strategic partnership with the United States. We will build on our strong cooperation in the military and energy fields," Plenković wrote on the "Ex" platform.
Slovenian Prime Minister Robert Golob said he wanted to improve bilateral relations and strengthen ties between the two countries with Trump's inauguration. Slovenian Foreign Minister Tanja Fajon stressed that "the United States is an important strategic partner for Slovenia and we will certainly work closely with the new administration, especially in areas of common interest."
Long-time diplomat and former ambassador to the United States Božo Cerar expressed concerns to the Slovenian news agency STA that Trump's policies would lead to a kind of division in the EU. He added that Trump, while not considering the EU as an entity worthy of attention, will not completely turn his back on either Europe or Ukraine.
Kiril Petkov, a former Bulgarian prime minister and current opposition member, said that Trump's return to the White House "should serve as a catalyst" for European defense efforts.
Petkov also said that supplies of liquefied natural gas (LNG) from the United States would be "more competitive" on the European market, which is in line with Trump's energy policy and reduces the use of fossil fuels from Russia in Europe.
"It is clear that there will be a lot of talk about the purchase of liquefied natural gas from the United States and about possible tariffs that the United States could impose," said Slovak Finance Minister Ladislav Kamenicki in Brussels after a meeting of EU finance ministers.
He drew the attention of his EU colleagues to the need to prevent the bloc from moving from one dependency to another.
Kamenicki recalled that before the war in Ukraine, the EU imported 40 percent of its gas from Russia. Some member states that used to buy more than 50 percent of their gas from Russia now import about 90 percent of their liquefied natural gas from America.
The EU’s decision to reduce its use of Russian energy resources comes amid heightened concerns that the Kremlin’s war in Ukraine could threaten the bloc’s security.
At the same time, Trump, who opposes the EU buying energy from Russia while the United States pays for Europe’s defense as part of NATO, has demanded that members of the military alliance increase that spending to 5 percent of gross domestic product (GDP), more than double the current minimum of 2 percent.
Poland, the only NATO member that borders both Russia and Ukraine, has taken advantage of Trump’s return to the White House to push for the bloc to take more decisive action to defend itself.
"Ask not America what it can do for our security. "Ask yourself what we can do for our own security," Polish Prime Minister Donald Tusk told the European Parliament on Wednesday, paraphrasing the late US President John F. Kennedy.
Tusk urged his European partners to view Trump's demand that NATO countries invest 5 percent of their budgets in defense as a "positive challenge" because "only an ally can wish another ally to be stronger.".
"In these times, Europe cannot afford to skimp on security," Tusk said, underlining his belief that not only Europe but also all allies of the United States must take responsibility for their own security, as Trump has insisted.
A little hope
Other countries also highlighted the positive aspects of the situation. Trump's return to the White House is above all an opportunity, Czech President Petr Pavel said, adding that he was looking forward to the new US administration's proposals on Ukraine and how to end the war.
"Let's look at this positively. What can we take from this moment of expectation that the new administration has brought, especially in terms of resolving the war in Ukraine," Pavel told reporters during a visit to Montenegro.
Ukraine has been resisting Russian aggression for almost three years, thanks to military and other assistance from the West, especially the United States.
A few days ago, Trump said he hoped to reach a ceasefire agreement within the first six months of his presidency.
Previously, the new president had claimed that he would end the war within 24 hours of returning to the White House.
In the cold
Trump's inauguration in the freezing winter weather of Washington best demonstrated America's changing appreciation of Europe.
Although heads of state and government are usually not included on the guest list for the ceremony, Trump broke the rule and set a precedent by inviting several foreign leaders. The only European leader in attendance was Italian Prime Minister Giorgia Meloni.
Meloni, leader of the far-right Brothers of Italy party, is on friendly terms with Trump and his close adviser and the world's richest man, Elon Musk.
For now, the Italian leader may be Europe's best route into Trump's inner circle.