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Trump’s Cash Cow: How He Treats European Allies

by Chief editor of world-today-news.com April 10, 2025
written by Chief editor of world-today-news.com

Donald Trump’s return to power has sparked a renewed focus on the trans-Atlantic relationship, particularly concerning the impact of his protectionist trade policies. This article delves into how Trump’s tariffs are fracturing the alliance between the U.S. and Europe, while simultaneously benefiting Russia. Understand the economic and geopolitical consequences of these actions and their implications for the future of international relations.

Trump’s Tariffs Fracture Trans-Atlantic Alliance, Benefit russia

A Shift in Global Strategy

President Joseph R. Biden Jr.recently emphasized the importance of alliances in global competition, a strategy top American diplomat R. Nicholas Burns summarized as Be nice to your allies. This approach contrasts sharply with that of President Trump.

Mr. Trump’s long-standing antagonism toward Europe, viewing allies as economic competitors, culminated in the imposition of tariffs on key partners, including Ukraine. Critically, Russia and North Korea were excluded from these tariffs, highlighting a willingness to disrupt the trans-Atlantic alliance that has maintained peace in europe for eight decades.

The European Perspective: Unreliable Partner

The tariffs, coupled with demands for NATO allies to increase military spending and expressed desires to seize territory from Denmark, signal long-term damage to U.S.-European relations.

The tariffs are another addition to the perception and assessment in Europe that the U.S. under Donald Trump is not only an unreliable partner, but a partner that cannot be trusted in any way. That changes 80 years of postwar history, when the trans-Atlantic alliance was the core of the Western world and of the global multilateral system.
Guntram Wolff, economist and former director of the German Council on foreign Relations

Mr. Wolff suggests that while Brussels will attempt to salvage key relationships, it cannot single-handedly sustain the global system.

Russia’s Gain

Mr. trump’s actions inadvertently benefit Russia, NATO’s primary adversary, by possibly weakening European adversaries. However, it’s worth noting that fluctuating oil prices have also impacted Russia’s economy.

European Commission’s Response

Ursula von der Leyen, president of the European Commission, expressed concern over the lack of strategic coherence in the U.S. approach.

There seems to be no order in the disorder. No clear path through the complexity and chaos that is being created as all U.S. trading partners are hit, while hurting the most vulnerable citizens.
Ursula von der Leyen, president of the European Commission

Europeans are increasingly aware that a second Trump term could further distance the U.S.from Europe, with an intensity that has surprised many.

The intensity, speed, aggression and imperialism of this governance has been a surprise to some people.
Mark Leonard, director of the European Council on Foreign Relations

Transactional Methods and Thier Limits

Many European governments initially believed they could manage Mr.Trump’s demands through transactional means, such as increasing weapon purchases and liquefied natural gas imports. Though, recent events, including uneven tariff applications and demands for Ukrainian minerals in exchange for military aid, have exposed the limitations of this approach.

The challenge for Europe is how to deal with a predatory America willing to use the vulnerability of allies to extort them, whether it’s a mineral deal in Ukraine or attempts to annex Greenland or the open way Trump is trying to divide Britain from the E.U. with differential trade deals.
Mark Leonard, director of the European Council on Foreign Relations

EU Unity and Potential Divisions

The European union has largely maintained unity due to the uniform submission of tariffs across its 27 member states. However, Washington may resort to differentiated tariffs on specific sectors to pressure individual countries on issues like Greenland.

Negotiation or Remaking the World?

There is speculation that the tariffs are a prelude to negotiation, as suggested by Eric Trump.

I wouldn’t want to be the last country that tries to negotiate a trade deal with @realDonaldTrump. The first to negotiate will win – the last will absolutely lose!

— Eric Trump (@EricTrump) June 27, 2024

However, analysts like Sophia Besch suggest uncertainty about the administration’s true intentions.

It’s not clear whether this is an opening offer to negotiate, or whether they really are remaking the world, with no interest in repairing it. Different people around Trump are pursuing different things.
Sophia Besch,german analyst at the Carnegie Endowment in washington

Ms. Besch emphasizes that tariffs and security are intertwined, reflecting a willingness to use American power against allies, potentially harming their economies and vulnerable populations.

U.S. Stance: A Call for Shared Responsibility

Secretary of State Marco Rubio attempted to reassure NATO foreign ministers, denouncing hysteria and hyperbole in the media and affirming Mr. Trump’s support for the alliance.President Trump’s made clear he supports NATO. We’re going to remain in NATO. mr. rubio stated.

However, Mr. Rubio also indicated that Mr. Trump expects European allies to assume greater responsibility for their security and for Ukraine, as America focuses on Asia.He’s against a NATO that does not have the capabilities that it needs to fulfill the obligations that the treaty imposes upon each and every member state. Mr. Rubio clarified.

Economic Impact and Military Spending

The tariffs’ economic impact, including potential inflation and reduced economic growth, could hinder European allies’ ability to increase military spending to meet NATO’s goals.

Germany’s Perspective

Germany anticipates a meaningful economic impact, with Finance Minister Jörg Kukies projecting a 15 percent reduction in German exports to the U.S. The German Economic Institute estimates potential costs of around 200 billion euros ($218 billion) over the next four years.

Seeking Alternative Markets

Maggie Switek from the Milken Institute suggests that Europeans will seek alternative markets and free-trade deals. There is still room for cooperation with the U.S. and U.S. companies as we think through how to navigate this new situation and new American theory. Ms. Switek noted.

Russia’s Reaction

The tariffs on american allies were welcomed by moscow. Former russian President Dmitri Medvedev commented on the situation.

We will sit on the riverbank and wait for the corpse of the EU economy to float by.

An old chinese proverb.

— Dmitry Medvedev (@MedvedevRussiaE) June 27, 2024

Invoking a Chinese proverb, Mr. Medvedev stated that Russia would sit by the river, waiting for the body of the enemy to float by. The decaying corpse of the EU economy.

April 10, 2025 0 comments
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