BRUSSELS ― European governments and corporations are racing to reduce their
exposure to U.S. technology, military hardware and energy resources as
transatlantic relations sour.
For decades, the EU relied on NATO guarantees to ensure security in the bloc,
and on American technology to power its business. Donald Trump’s threats to take
over Greenland, and aggressive comments about Europe by members of his
administration, have given fresh impetus to European leaders’ call for
“independence.”
“If we want to be taken seriously again, we will have to learn the language of
power politics,” German Chancellor Friedrich Merz said last week.
From orders banning civil servants from using U.S.-based videoconferencing tools
to trade deals with countries like India to a push to diversify Europe’s energy
suppliers, efforts to minimize European dependence on the U.S. are gathering
pace. EU leaders warn that transatlantic relations are unlikely to return to the
pre-Trump status quo.
EU officials stress that such measures amount to “de-risking” Europe’s
relationship with the U.S., rather than “decoupling” — a term that implies a
clean break in economic and strategic ties. Until recently, both expressions
were mainly applied to European efforts to reduce dependence on China. Now, they
are coming up in relation to the U.S., Europe’s main trade partner and security
benefactor.
The decoupling drive is in its infancy. The U.S. remains by far the largest
trading partner for Europe, and it will take years for the bloc to wean itself
off American tech and military support, according to Jean-Luc Demarty, who was
in charge of the European Commission’s trade department under the body’s former
president, Jean-Claude Juncker.
Donald Trump’s threats to take over Greenland, and aggressive comments about
Europe by members of his administration, have given fresh impetus to European
leaders’ call for “independence.” | Kristian Tuxen Ladegaard Berg/NurPhoto via
Getty Images
“In terms of trade, they [the U.S.] represent a significant share of our
exports,” said Demarty. “So it’s a lot, but it’s not a matter of life and
death.”
The push to diversify away from the U.S. has seen Brussels strike trade deals
with the Mercosur bloc of Latin American countries, India and Indonesia in
recent months. The Commission also revamped its deal with Mexico, and revived
stalled negotiations with Australia.
DEFENDING EUROPE: FROM NATO TO THE EU
Since the continent emerged from the ashes of World War II, Europe has relied
for its security on NATO — which the U.S. contributes the bulk of funding to. At
a weekend retreat in Zagreb, Croatia, conservative European leaders including
Merz said it was time for the bloc to beef up its homegrown mutual-defense
clause, which binds EU countries to an agreement to defend any EU country that
comes under attack.
While it has existed since 2009, the EU’s Article 42.7 mutual defense clause was
rarely seen as necessary because NATO’s Article 5 served a similar purpose.
But Europe’s governments have started to doubt whether the U.S. really would
come to Europe’s rescue.
In Zagreb, the leaders embraced the EU’s new role as a security actor, tasking
two leaders, as yet unnamed, with rapidly cooking up plans to turn the EU clause
from words to an ironclad security guarantee.
“For decades, some countries said ‘We have NATO, why should we have parallel
structures?’” said a senior EU diplomat who was granted anonymity to talk about
confidential summit preparations. After Trump’s Greenland saber-rattling, “we
are faced with the necessity, we have to set up military command structures
within the EU.”
At a weekend retreat in Zagreb, Croatia, conservative European leaders including
Merz said it was time for the bloc to beef up its homegrown mutual-defense
clause, which binds EU countries to an agreement to defend any EU country that
comes under attack. | Marko Perkov/AFP via Getty Images
In comments to EU lawmakers last week, NATO Secretary-General Mark Rutte said
that anyone who believes Europe can defend itself without the U.S. should “keep
on dreaming.”
Europe remains heavily reliant on U.S. military capabilities, most notably in
its support for Ukraine’s fight against Russia. But some Europeans are now
openly talking about the price of reducing exposure to the U.S. — and saying
it’s manageable.
TECHNOLOGY: TEAMS OUT, VISIO IN
The mood shift is clearest when it comes to technology, where European reliance
on platforms such as X, Meta and Google has long troubled EU voters, as
evidenced by broad support for the bloc’s tech legislation.
French President Emmanuel Macron’s government is planning to ban officials from
using U.S.-based videoconferencing tools. Other countries like Germany are
contemplating similar moves.
“It’s very clear that Europe is having our independence moment,” EU tech czar
Henna Virkkunen told a POLITICO conference last week. “During the last year,
everybody has really realized how important it is that we are not dependent on
one country or one company when it comes to some very critical technologies.”
France is moving to ban public officials from using American platforms including
Google Meet, Zoom and Teams, a government spokesperson told POLITICO. Officials
will soon make the switch to Visio, a videoconferencing tool that runs on
infrastructure provided by French firm Outscale.
In the European Parliament, lawmakers are urging its president, Roberta Metsola,
to ditch U.S. software and hardware, as well as a U.S.-based travel booking
tool.
In Germany, politicians want a potential German or European substitute for
software made by U.S. data analysis firm Palantir. “Such dependencies on key
technologies are naturally a major problem,” Sebastian Fiedler, an SPD lawmaker
and expert on policing, told POLITICO.
Even in the Netherlands, among Europe’s more pro-American countries, there are
growing calls from lawmakers and voters to ring-fence sensitive technologies
from U.S. influence. Dutch lawmakers are reviewing a petition signed by 140,000
people calling on the state to block the acquisition of a state identity
verification tool by a U.S. company.
At the World Economic Forum in Davos, Switzerland, in late January, German
entrepreneur Anna Zeiter announced the launch of a Europe-based social media
platform called W that could rival Elon Musk’s X, which has faced fines for
breaching the EU’s content moderation rules. W plans to host its data on
“European servers owned by European companies” and limits its investors to
Europeans, Zeiter told Euronews.
So far, Brussels has yet to codify any such moves into law. But upcoming
legislation on cloud and AI services are expected to send signals about the need
to Europeanize the bloc’s tech offerings.
ENERGY: TIME TO DIVERSIFY
On energy, the same trend is apparent.
The United States provides more than a quarter of the EU’s gas, a share set to
rise further as a full ban on Russian imports takes effect.
But EU officials warn about the risk of increasing Europe’s dependency on the
U.S. in yet another area. Trump’s claims on Greenland were a “clear wake-up
call” for the EU, showing that energy can no longer be seen in isolation from
geopolitical trends, EU Energy Commissioner Dan Jørgensen said last Wednesday.
The Greenland crisis reinforced concerns that the bloc risks “replacing one
dependency with another,” said Jørgensen, adding that as a result, Brussels is
stepping up efforts to diversify, deepening talks with alternative suppliers
including Canada, Qatar and North African countries such as Algeria.
FINANCE: MOVING TO EUROPEAN PAYMENTS
Payment systems are also drawing scrutiny, with lawmakers warning about
over-reliance on U.S. payment systems such as Mastercard and Visa.
The digital euro, a digital version of cash that the European Central Bank is
preparing to issue in 2029, aims to cut these dependencies and provide a
pan-European sovereign means of payment. “With the digital euro, Europeans would
remain in control of their money, their choices and their future,” ECB President
Christine Lagarde said last year.
In Germany, some politicians are sounding the alarm about 1,236 tons of gold
reserves that Germany keeps in the Federal Reserve Bank of New York.
“In a time of growing global uncertainty and under President Trump’s
unpredictable U.S. policy, it’s no longer acceptable” to have that much in gold
reserves in the U.S., Marie-Agnes Strack-Zimmermann, the German politician from
the liberal Free Democratic Party, who chairs the Parliament’s defense
committee, told Der Spiegel.
Several European countries are pushing the EU to privilege European
manufacturers when it comes to spending EU public money via “Buy European”
clauses.
Until a few years ago, countries like Poland, the Netherlands or the Baltic
states would never have agreed on such “Buy European” clauses. But even those
countries are now backing calls to prioritize purchases from EU-based companies.
MILITARY INVESTMENT: BOOSTING OWN CAPACITY
A €150 billion EU program to help countries boost their defense investments,
finalized in May of last year, states that no more than 35 percent of the
components in a given purchase, by cost, should originate from outside the EU
and partner states like Norway and Ukraine. The U.S. is not considered a partner
country under the scheme.
For now, European countries rely heavily on the U.S. for military enablers
including surveillance and reconnaissance, intelligence, strategic lift, missile
defense and space-based assets. But the powerful conservative umbrella group,
the European People Party, says these are precisely the areas where Europe needs
to ramp up its own capacities.
When EU leaders from the EPP agreed on their 2026 roadmap in Zagreb, they stated
that the “Buy European” principle should apply to an upcoming Commission
proposal on joint procurement.
The title of the EPP’s 2026 roadmap? “Time for independence.”
Camille Gijs, Jacopo Barigazzi, Mathieu Pollet, Giovanna Faggionato, Eliza
Gkritsi, Elena Giordano, Ben Munster and Sam Clark contributed reporting from
Brussels. James Angelos contributed reporting from Berlin.
Tag - Weapons
KYIV — Ukrainian President Volodymyr Zelenskyy said late Thursday he couldn’t
say whether U.S. President Donald Trump’s proposal of a weeklong truce would
work, but cast the initiative as an “opportunity.”
Trump’s ceasefire initiative is an attempt to spare the residents of Ukrainian
cities from an onslaught of Russian attacks that have plunged civilians into
sub-zero conditions by devastating their power grids and central heating
systems.
The U.S. president had said Thursday that he secured an assurance from Russian
President Vladimir Putin that Moscow’s forces would not fire on Ukrainian cities
during a period of bitter cold.
“This is an initiative of the American side and personally of the president of
the United States. We can regard it as an opportunity rather than an agreement.
Whether it will work or not, and what exactly will work, I cannot say at this
point. There is no ceasefire. There is no official agreement on a ceasefire, as
is typically reached during negotiations,” Zelenskyy told reporters Thursday
evening.
Zelenskyy said the prospect of such a truce reopened a long-running discussion
to de-escalate the war via an agreement that the Kremlin would stop destroying
Ukrainian energy infrastructure, and Kyiv would halt attacks on Russian oil
depots and refining facilities.
Zelenskyy said the Russians had not accepted such a deal last year and he
sounded skeptical about their sincerity this time.
“At that time, Russia’s responses to such de-escalation steps were negative. We
will see how it unfolds now,” he told the reporters.
DAMAGE ALREADY DONE
A truce would come very late, given the scale of damage already wrought by the
Russians.
In Kyiv, Russian forces have destroyed an entire power plant in the biggest
residential district, depriving almost 500,000 residents of heating and
electricity.
The situation is so dire that the European Commission had to send 447 emergency
generators worth €3.7 million, with individual countries, such as Germany and
Poland, also sending other energy equipment worth millions of euros to prevent a
humanitarian catastrophe in Kyiv and other cities.
The Ukrainians have hit back by striking Russian oil refineries and power plants
in Belgorod, and some other Russian cities within the range of strike
capabilities.
“The Americans said they want to raise the issue of de-escalation, with both
sides demonstrating certain steps toward refraining from the use of long-range
capabilities to create more space for diplomacy,” Zelenskyy said.
He added that Kyiv has agreed with the U.S. initiative, as it always agrees to
“all American rational ideas.”
“If Russia does not strike our energy infrastructure — generation facilities or
any other energy assets — we will not strike theirs. I believe this is the
answer the mediator of the negotiations, namely the United States of America,
was expecting,” Zelenskyy said.
Whether Russia is really serious about a ceasefire was another question,
Zelenskyy cautioned.
NEW BOMBARDMENT
Indeed, there was little sign of goodwill from the Russian side on Friday.
The Russian armed forces shelled Ukraine with more than 112 drones and various
missiles, the Ukrainian Air Force reported Friday.
Although Kyiv has not been attacked on Friday, and no strikes on energy
facilities were reported, the eastern region of Kharkiv was heavily shelled. Two
people there were wounded, and one person was killed, the governor, Oleh
Synegubov, said in a Telegram statement. Civilian infrastructure was hit and
power cables were damaged by the attacks. The air force also reported Russian
drones in Sumy, Dnipro and Chernihiv regions, as the attacks continued.
Russian Foreign Minister Sergey Lavrov also sounded skeptical about a ceasefire
on Thursday.
“We have spoken many times. President Vladimir Putin has often reminded us that
a truce, which is again being sought by Volodymyr Zelenskyy, at least for 60
days, and preferably longer, is unacceptable for us,” he told Turkish media.
Lavrov claimed all the previous periods in which Russia has slowed its
offensives were used by the West “to pump Ukraine with weapons, and restore the
strength of its army.”
PARIS — Greenland Prime Minister Jens-Frederik Nielsen warned that democratic
values and territorial integrity will guide his country’s talks with the United
States over any future deal about the Arctic island.
“We have some red lines we cannot cross but, from a Greenlandic perspective, we
will try to sort out some sort of agreement,” he said alongside Danish Prime
Minister Mette Frederiksen in Paris. “We have been working with the U.S. for
many years now.”
Tensions between Europe and the U.S. have cooled after President Donald Trump
appeared to back down on his threats to take over the self-ruling Danish
territory. Instead, he said he agreed on a framework to reach an agreement with
Greenland during talks last week with NATO Secretary-General Mark Rutte in
Switzerland.
“Denmark is a sovereign state and it is one of the most basic democratic rules
and values that territorial integrity has to be valued,” Frederiksen said during
a conference at the Sciences Po Institute in Paris. “And next to that, don’t
threaten an ally.”
Frederiksen and Nielsen are in Paris for a meeting with French President
Emmanuel Macron after they held talks with German Chancellor Friedrich Merz on
Tuesday.
Nielsen painted a stark picture of the Greenlandic perspective as talks with the
U.S. unfold.
“We are under pressure, serious pressure … as Greenland leaders, we have to deal
with people who are afraid and scared,” he said.
“Imagine you are living in peace, you are a loyal partner, loyal to the alliance
… and then some of your partners talk about taking, acquiring, and don’t rule
out taking weapons,” he added.
Frederiksen also warned that Europeans need to look beyond Greenland and
consider the bigger picture of Washington’s changing relationship with the
continent.
Just hours after federal agents shot and killed a 37-year-old man in
Minneapolis, Trump administration officials called the deceased a “would-be
assassin” and blamed Democrats for siding with “terrorists.”
Democrats, meanwhile, renewed calls for Minnesota officials to investigate the
shooting and characterized the president’s immigration actions as “a campaign of
organized brutality.”
With few official details released on the latest shooting in Minneapolis, the
White House and Democrats retreated to heated rhetoric in the immediate
aftermath of Saturday’s incident, with President Donald Trump accusing state
officials of “inciting Insurrection” and Democrats accusing federal agents of
“murder.”
“A would-be assassin tried to murder federal law enforcement and the official
Democrat account sides with the terrorists,” deputy chief of staff Stephen
Miller wrote on X Saturday, referring to a tweet from the Democratic National
Committee about the shooting that stated “Get ICE out of Minnesota NOW.”
Democrat Rep. Ilhan Omar of Minnesota focused her anger on ICE, posting on
social media: “This appears to be an execution by immigration enforcement. I am
absolutely heartbroken, horrified, and appalled that federal agents murdered
another member of our community.”
In Saturday morning’s shooting, a 37-year-old man was shot and killed by federal
agents in Minneapolis who claimed he approached federal officers with a 9 mm gun
but didn’t specify if he was holding or brandishing the weapon. Various videos
of the incident appear to show the man holding a phone.
Minneapolis has emerged as the epicenter of the debate over the Trump
administration’s immigration actions and deployment of federal agents. It came
to a head after a federal agent shot and killed a 37-year-old woman, Renee Good,
earlier this month in an incident that has sparked weeks of demonstrations in
the city and fights between the White House and state officials over who would
investigate the shootings.
Trump, in a post on Truth Social, described the man who was shot Saturday as a
“gunman” and suggested a cover-up by Minnesota Democrats. The Justice
Department has subpoenaed several Democratic Minneapolis state officials,
including Gov. Tim Walz, who called the DOJ’s subpoena a “partisan distraction.”
“AMONG OTHER THINGS, THIS IS A ‘COVER UP’ FOR THE BILLIONS OF DOLLARS THAT HAVE
BEEN STOLEN FROM THE ONCE GREAT STATE (BUT SOON TO BE GREAT AGAIN!) OF
MINNESOTA!” Trump wrote in a separate post.
Trump also assailed Minneapolis Mayor Jacob Frey, a Democrat, and Walz in the
first Saturday post, accusing them of “inciting Insurrection, with their
pompous, dangerous, and arrogant rhetoric.”
U.S. Border Patrol Commander Gregory Bovino told reporters at a Saturday press
conference that the incident “looks like a situation where an individual wanted
to do maximum damage and massacre law enforcement,” though he didn’t provide any
evidence for his claim.
“If you obstruct a law enforcement officer or assault a law enforcement officer,
you are in violation of the law and will be arrested,” he added. “Our law
enforcement officers take an oath to protect the public.”
Video of the shooting, posted on social media and verified by The New York
Times, shows the 37-year-old man appearing to film agents in Minneapolis on
Saturday before they push him and several others back. The videos don’t appear
to show the man drawing his weapon, but not all angles are accounted for. During
a struggle with the man on the ground, an agent fires several shots, then the
group of federal agents back away.
The man, identified by the Minneapolis Star Tribune as Alex Pretti, had a legal
permit to carry a firearm, according to Minneapolis Police Chief Brian O’Hara,
who spoke during a press conference Saturday.
Bovino told reporters that “an individual approached U.S. Border Patrol agents
with a nine millimeter semi-automatic handgun. The agents attempted to disarm
the individual, but he violently resisted. Fearing for his life and the lives
and safety of fellow officers, a border patrol agent fired defensive shots.” But
when asked by a reporter when the individual drew his firearm, Bovino said the
shooting is still under investigation.
The latest POLITICO Poll illustrates just how sharply views of ICE — and its
presence in cities across the country — diverge along partisan lines. A majority
of voters who backed Trump in 2024 — 57 percent — say risks to the lives of
anti-ICE protestors are a price worth paying to carry out immigration
enforcement, compared with just 15 percent of voters who backed former Vice
President Kamala Harris.
By contrast, nearly three-quarters of Harris voters — 71 percent — say it
is not worth risking the lives of anti-ICE protesters to conduct immigration
enforcement, a view shared by just 31 percent of Trump voters, the poll,
conducted from Jan. 16 to 19, found.
The divide extends to perceptions of public safety: 64 percent of Trump voters
say ICE agents make U.S. cities safer, while 80 percent of Harris voters say the
opposite, that their presence is making them more dangerous.
Democrats also used heated language to describe the shooting. During a
Democratic Senate primary debate in Texas on Saturday, state Rep. James Talarico
raised the Minneapolis shooting, saying: “ICE shot a mother in the face. ICE
kidnapped a 5-year-old boy. ICE executed a man in broad daylight on our streets
just this morning. It’s time to tear down this secret police force and replace
it with an agency that actually is going to focus on public safety.”
His opponent, Rep. Jasmine Crockett, also weighed in: “This is the fifth-highest
funded military force in the entire world. And what are they doing? They’re
killing people in the middle of the street.”
Walz on Saturday urged the federal government to allow Minnesota officials to
take control of the probe into the shooting. He told reporters that he said to
the White House in an early morning call that “the federal government cannot be
trusted to lead this investigation. The state will handle it, period.”
“As I said last week, this federal occupation of Minnesota long ago stopped
being a matter of immigration enforcement,” Walz said at a press conference
Saturday. “It’s a campaign of organized brutality against the people of our
state. And today, that campaign claimed another life. I’ve seen the videos from
several angles. And it’s sickening.”
When asked for comment, the White House referred POLITICO to Trump’s Truth
Social post and to a post on X from the Department of Homeland Security, which
claimed, “The officers attempted to disarm the suspect but the armed suspect
violently resisted.”
They did not respond to requests to questions as to what evidence showed the man
who was shot was a “terrorist.”
Vice President JD Vance also placed the blame of Saturday’s shooting at
Minnesota leaders’ feet, saying their unwillingness to work with immigration
enforcement agents was the primary reason for the shooting.
“When I visited Minnesota, what the ICE agents wanted more than anything was to
work with local law enforcement so that situations on the ground didn’t get out
of hand,” he wrote on X. “The local leadership in Minnesota has so far refused
to answer those requests.”
Liz Crampton contributed to this report.
BRUSSELS — Only a few days ago, EU diplomats and officials were whispering
furtively about the idea they might one day need to think about how to push back
against Donald Trump. They’re not whispering anymore.
Trump’s attempt, as EU leaders saw it, to “blackmail” them with the threat of
tariffs into letting him take the sovereign Danish island of Greenland provoked
a howl of outrage — and changed the world.
Previous emergency summits in Brussels focused on existential risks to the
European Union, like the eurozone crisis, Brexit, the coronavirus pandemic, and
Russia’s invasion of Ukraine. This week, the EU’s 27 leaders cleared their
diaries to discuss the assault they faced from America.
There can be little doubt that the transatlantic alliance has now been
fundamentally transformed from a solid foundation for international law and
order into a far looser arrangement in which neither side can be sure of the
other.
“Trust was always the foundation for our relations with the United States,” said
Polish Prime Minister Donald Tusk as he arrived for the summit in Brussels on
Thursday night. “We respected and accepted American leadership. But what we need
today in our politics is trust and respect among all partners here, not
domination and for sure not coercion. It doesn’t work in our world.”
The catalyst for the rupture in transatlantic relations was the U.S. president’s
announcement on Saturday that he would hit eight European countries with tariffs
of 10 percent for opposing his demand to annex Greenland.
That was just the start. In an avalanche of pressure, he then canceled his
support for the U.K. premier’s decision to hand over the Chagos Islands, home to
an important air base, to Mauritius; threatened France with tariffs on Champagne
after Macron snubbed his Board of Peace initiative; slapped down the Norwegian
prime minister over a Nobel Peace Prize; and ultimately dropped his threats both
to take Greenland by military force and to hit countries that oppose him with
tariffs.
Here was a leader, it seemed to many watching EU officials, so wild and
unpredictable that he couldn’t even remain true to his own words.
But what dismayed the professional political class in Brussels and beyond was
more mundane: Trump’s decision to leak the private text messages he’d received
directly from other world leaders by publishing them to his 11.6 million
followers on social media.
Trump’s screenshots of his phone revealed French President Emmanuel Macron
offering to host a G7 meeting in Paris, and to invite the Russians in the
sidelines. NATO Secretary-General Mark Rutte, who once called Trump “daddy,”
also found his private text to Trump made public, in which he praised the
president’s “incredible” achievements, adding: “Can’t wait to see you.”
Leaking private messages “is not acceptable — you just don’t do it,” said one
senior diplomat, like others, on condition of anonymity because the matter is
sensitive. “It’s so important. After this, no one can trust him. If you were any
leader you wouldn’t tell him anything. And this is a crucial means of
communication because it is quick and direct. Now everything will go through
layers of bureaucracy.”
Mark Carney had been one of the classic Davos set and was a regular attendee:
suave, a little smug, and seeming entirely comfortable among snow-covered peaks
and even loftier clientele. | Gian Ehrenzeller/EPA
The value of direct contact through phone texts is well known to the leaders of
Europe, who, as POLITICO revealed, have even set up their own private group chat
to discuss how to respond when Trump does something inflammatory. Such messages
enable ministers and officials at all levels to coordinate solutions before
public statements have to be made, the same senior diplomat said. “If you don’t
have trust, you can’t work together anymore.”
NO MORE NATO
Diplomats and officials now fear the breakdown in personal trust between
European leaders and Trump has potentially grave ramifications.
Take NATO. The military alliance is, at its core, a promise: that member
countries will back each other up and rally to their defense if one of them
comes under attack. Once that promise looks less than solid, the power of NATO
to deter attacks is severely undermined. That’s why Denmark’s Prime Minister
Mette Frederiksen warned that if Trump invaded the sovereign Danish territory of
Greenland it would be the end of NATO.
The fact he threatened to do so has already put the alliance into intensive
care, another diplomat said.
Asked directly if she could still trust the U.S. as she arrived at the Brussels
summit, Frederiksen declined to say yes. “We have been working very closely with
the United States for many years,” she replied. “But we have to work together
respectfully, without threatening each other.”
European leaders now face two tasks: To bring the focus back to the short-term
priorities of peace in Ukraine and resolving tensions over Greenland; and then
to turn their attention to mapping out a strategy for navigating a very
different world. The question of trust, again, underpins both.
When it comes to Ukraine, European leaders like Macron, Germany’s Friedrich Merz
and the U.K.’s Keir Starmer have spent endless hours trying to persuade Trump
and his team that providing Kyiv with an American military element underpinning
security guarantees is the only way to deter Russian President Vladimir Putin
from attacking again in future.
Given how unreliable Trump has been as an ally to Europe, officials are now
privately asking what those guarantees are really worth. Why would Russia take
America’s word seriously? Why not, in a year or two, test it to make sure?
THE POST-DAVOS WORLD
Then there’s the realignment of the entire international system.
There was something ironic about the setting for Trump’s assaults on the
established world order, and about the identities of those who found themselves
the harbingers of its end.
Among the snow-covered slopes of the Swiss resort of Davos, the world’s business
and political elite gather each year to polish their networks, promote their
products, brag about their successes, and party hard. The super rich, and the
occasional president, generally arrive by helicopter.
As a central bank governor, Mark Carney had been one of the classic Davos set
and was a regular attendee: suave, a little smug, and seeming entirely
comfortable among snow-covered peaks and even loftier clientele.
Now prime minister of Canada, this sage of the centrist liberal orthodoxy had a
shocking insight to share with his tribe: “Today,” Carney began this week, “I’ll
talk about the rupture in the world order, the end of a nice story, and the
beginning of a brutal reality where geopolitics among the great powers is not
subject to any constraints.”
“The rules-based order is fading,” he intoned, to be replaced by a world of
“great power rivalry” in which “the strong do what they can, and the weak suffer
what they must.”
“The old order is not coming back. We should not mourn it. Nostalgia is not a
strategy.”
Carney impressed those European officials watching. He even quoted Finnish
President Alexander Stubb, who has enjoyed outsized influence in recent months
due to the connections he forged with Trump on the golf course.
NATO Secretary-General Mark Rutte, who once called Donald Trump “daddy,” also
found his private text to Donald Trump made public, in which he praised the
president’s “incredible” achievements, adding: “Can’t wait to see you.” | Jim
lo Scalzo/EPA
Ultimately, Carney had a message for what he termed “middle powers” — countries
like Canada. They could, he argued, retreat into isolation, building up their
defenses against a hard and lawless world. Or they could build something
“better, stronger and more just” by working together, and diversifying their
alliances. Canada, another target of Trump’s territorial ambitions, has just
signed a major partnership agreement with China.
As they prepared for the summit in Brussels, European diplomats and officials
contemplated the same questions. One official framed the new reality as the
“post-Davos” world. “Now that the trust has gone, it’s not coming back,” another
diplomat said. “I feel the world has changed fundamentally.”
A GOOD CRISIS
It will be up to European Commission President Ursula von der Leyen and her team
to devise ways to push the continent toward greater self-sufficiency, a state
that Macron has called “strategic autonomy,” the diplomat said. This should
cover energy, where the EU has now become reliant on imports of American gas.
The most urgent task is to reimagine a future for European defense that does not
rely on NATO, the diplomat said. Already, there are many ideas in the air. These
include a European Security Council, which would have the nuclear-armed non-EU
U.K. as a member. Urgent efforts will be needed to create a drone industry and
to boost air defenses.
The European Commission has already proposed a 100,000-strong standing EU army,
so why not an elite special forces division as well? The Commission’s officials
are world experts at designing common standards for manufacturing, which leaves
them well suited to the task of integrating the patchwork of weapons systems
used by EU countries, the same diplomat said.
Yet there is also a risk. Some officials fear that with Trump’s having backed
down and a solution to the Greenland crisis now apparently much closer, EU
leaders will lose the focus and clarity about the need for change they gained
this past week. In a phrase often attributed to Churchill, the risk is that EU
countries will “let a good crisis go to waste.”
Domestic political considerations will inevitably make it harder for national
governments to commit funding to shared EU defense projects. As hard-right
populism grows in major regional economies, like France, the U.K. and Germany,
making the case for “more Europe” is harder than ever for the likes of Macron,
Starmer and Merz. Even if NATO is in trouble, selling a European army will be
tough.
While these leaders know they can no longer trust Trump’s America with Europe’s
security, many of them lack the trust of their own voters to do what might be
required instead.
LONDON — Britain will not take part in Donald Trump’s controversial Board of
Peace signing ceremony in Davos Thursday, the U.K.’s top diplomat said.
Foreign Secretary Yvette Cooper said Britain will not be one of the opening
signatories of the U.S. president’s body tasked with overseeing the
reconstruction of Gaza after the Israel-Hamas war.
“We won’t be one of the signatories today,” Cooper told the BBC, citing concerns
the legal treaty “raises much broader issues.”
“We do also have concerns about President Putin being part of something which is
talking about peace when we have still not seen any signs from Putin that there
will be a commitment to peace in Ukraine,” she added.
The foreign secretary stressed Britain will still provide practical support for
the Palestinian committee which is due to run Gaza and ensure humanitarian aid
reaches citizens and Hamas’ weapons are decommissioned.
She stressed “the other crucial issue that has a direct impact on U.K. security
is getting a peace agreement for Ukraine.
“And so far we have seen no sign that Putin is actually willing to come and make
that agreement. That’s where the pressure needs to be now.”
The U.S. president invited Russia’s Vladimir Putin to sit on the bloc tasked
with resolving global conflicts. Israeli Prime Minister Benjamin Netanyahu says
he will take part, but France’s Emmanuel Macron has rejected membership over
worries the U.N. will be undermined.
Former British Prime Minister Tony Blair is expected to join the board’s
executive committee.
BRUSSELS — European governments have reached a difficult conclusion: The
Americans are the baddies now.
As leaders of the EU’s 27 countries assemble in Brussels for an emergency summit
Thursday, that assessment is predominant across almost all capitals in Europe,
according to nine EU diplomats. These officials come from countries which have
varying degrees of historic fondness of the U.S., and they made clear that this
way of thinking is particularly stark in places that have previously had the
strongest ties to Washington.
The sense of dread and skepticism remains, and the summit will still go ahead,
despite Donald Trump declaring late Wednesday that he’s struck a deal on
Greenland and won’t impose tariffs on European countries after all —
underscoring how the gathering has become more than just about the latest
blowup.
The U.S. president’s designs on Greenland, which he set out earlier in the day
in Davos, Switzerland, demanding “immediate negotiations” to obtain the island,
have come as a last straw for many leaders. Throughout the first year of his
second term, they had clung to the hope that their worst fears about the country
that has underpinned European security since 1945 wouldn’t be realized.
But the moment for making nice “has ended” and “the time has come to stand up
against Trump,” Anders Fogh Rasmussen, former NATO secretary-general and
ex-Danish prime minister, told BBC radio.
Several of the envoys that POLITICO spoke to for this article, all of whom were
granted anonymity because of the sensitive nature of their work, said they felt
personally betrayed, some having studied and worked in the U.S. or having
advocated for closer transatlantic ties.
“Our American Dream is dead,” said an EU diplomat from a country that has been
among the bloc’s transatlantic champions. “Donald Trump murdered it.”
Europe’s collective realization is likely to be in evidence at the summit ― not
merely in potential decisions to prepare for retaliatory trade measures against
the U.S., should Trump reverse course again and push ahead with his claims on
Greenland.
It will also be apparent in the statements leaders are likely to make to each
other in private and then publicly. French President Emmanuel Macron
foreshadowed that in his own speech in Davos, saying Europe had “very strong
tools” and “we have to use them when we are not respected, and when the rules of
the game are not respected.”
LIMITED RELIEF
Trump’s speech at Davos, during which he called Denmark’s self-governing island
“our territory,” did nothing to dial down the temperature 24 hours before the
leaders’ hastily arranged gathering in the Belgian capital to discuss their next
response to the disintegrating postwar order.
While Trump ruled out the use of military force to seize Greenland, EU
governments didn’t regard this as a climbdown because of the harshness of his
language about Europe in general and clear confirmation of his intentions,
according to two EU diplomats.
Trump did eventually walk back his threat of issuing tariffs on the eight
European countries which he considered to be standing in his way on Greenland,
but by that point, things were already too far gone.
“Our American Dream is dead,” said an EU diplomat from a country that has been
among the bloc’s transatlantic champions. “Donald Trump murdered it.” | Mandel
Ngan/Getty Images
“After the back and forth of the last few days, we should now wait and see what
substantive agreements are reached between [NATO Secretary-General] Mr. Rutte
and Mr. Trump,” Germany’s Vice Chancellor Lars Klingbeil told German broadcaster
ZDF. “No matter what solution is now found for Greenland, everyone must
understand that we cannot sit back, relax, and be satisfied.”
The moment the U.S. president threatened those tariffs on Saturday was when the
schism “became real,” said an EU diplomat.
“Maybe this push gets us a few months, maybe it’s a more permanent thing,” said
another, referring to Trump’s about-face. “I think [Trump’s] speech earlier
today will give food for thought in most if not all capitals, tariffs or not.”
European Commission President Ursula von der Leyen summed up the mood during her
Davos speech Tuesday.
“The world has changed permanently,” she said. “We need to change with it.”
At their summit, EU leaders will discuss the state of the transatlantic
relationship. Prior to Trump’s tariff climbdown, they were preparing to ask the
Commission to ready its most powerful trade weapon against the U.S., the
Anti-Coercion Instrument (ACI), as POLITICO reported on Tuesday.
The EU created its “trade bazooka” in 2023 to deal with the threat posed by what
it perceived as hostile countries, most notably China, which it feared were
using their markets and their economies to blackmail the EU into doing their
bidding. The idea that Brussels would deploy it against the U.S. had previously
been unthinkable.
“We are experiencing a great rupture of the world order,” said a senior envoy
from a country that was seen in the EU as a key American ally. Leaders will
discuss “de-risking” from the U.S., the diplomat said — a term that has
previously been reserved for the EU’s relationship with Beijing. “Trust is
lost,” they said.
THE THERAPY SUMMIT
The summit will be akin to “therapy,” said one EU official familiar with the
preparation for the European Council. It will provide an opportunity for the
leaders to issue a concrete response to Trump’s Davos speech and subsequent
claim of a deal.
The assessment that the U.S. is no longer a reliable ally has come gradually.
The scales first fell from Europe’s leaders’ eyes when the Trump administration
published its National Security Strategy in early December, in which it vowed to
boost “patriotic European parties” to the detriment of the EU. (Which may go
some way to explaining why some EU leaders, like Hungary’s Viktor Orbán, are
still clinging to Trump.)
Then, Trump renewed his rhetoric about taking Greenland, the U.S. ambassador to
Iceland called himself the governor of the 52nd U.S. state, and Trump sent a
letter to Norwegian Prime Minister Jonas Gahr Støre, in which he said that his
failure to be awarded the Nobel Peace meant he would “no longer feel an
obligation to think purely of Peace.”
One senior EU envoy said they were convinced the letter was a fake. Its
authenticity was then confirmed.
Two senior diplomats POLITICO spoke with separately compared the current state
of the U.S. with the time leading up to World War II.
“I think we are past Munich now,” said one, referring to a 1938 meeting where
Britain, France and Italy appeased Adolf Hitler by allowing him to annex
Czechoslovakia. “We realize that appeasement is not the right policy anymore.”
The abrupt decline of U.S. standing has been particularly painful for Denmark,
which Trump called “ungrateful” in Davos.
Copenhagen has been shocked by his behavior, having for decades been among
America’s most friendly allies. Denmark deployed forces in support of the U.S.
to some of the most dangerous combat zones in the Middle East, including Helmand
Province in Afghanistan. The country suffered among the worst per-capita losses
of life.
“So many of us have studied in the U.S., we all wanted to work there,” said one
Danish official. “This is simply betrayal.”
Gabriel Gavin, Nicholas Vinocur, Tim Ross and Nette Nöstlinger contributed
reporting.
KYIV — Without electricity for 12 hours a day, the fridge is no longer any use.
But it’s a stable minus 10 degrees Celsius on the balcony, so I store my food
there. Outside today you’ll find chicken soup, my favorite vegetable salad and
even my birthday cake — all staying fresh in the biting chill.
This is the latest terror the Russians have inflicted on our capital — during
the cruelest winter since their all-out invasion began in February 2022. They
have smashed our energy grids and central heating networks with relentless drone
attacks; the frost then does the rest, caking power cables and heating pipes in
thick ice that prevents repairs.
At times the temperature drops to minus 20 C and the frost permeates my
apartment, its crystals covering the windows and invading the walls. Russia’s
latest attack disrupted heating for 5,600 residential buildings in Kyiv,
including mine.
My daily routine now includes interspersing work with a lot of walking up and
down from the 14th floor of my apartment block, carrying liters of water, most
importantly to my grandmother.
Granny turned 80 last year. Her apartment at least has a gas stove, meaning we
can pour boiling water into rubber hot water bottles and tie them to her body.
“Why can’t anyone do anything to make Putin stop?” she cries, complaining that
the cold gnaws into every bone of her body.
The Kremlin’s attempt to freeze us to death has been declared a national
emergency, and millions of Ukrainians have certainly had it harder than I. Many
have been forced to move out and stay in other cities, while others practically
live in malls or emergency tents where they can work and charge their phones and
laptops.
FEELING FORGOTTEN
Kyiv is crying out for help, but our plight rarely makes the headlines these
days. All the attention now seems focused on a potential U.S. invasion of
Greenland. Our president, Volodymyr Zelenskyy, complains he now has to fight
tooth-and-nail to secure deliveries of air-defense missiles from allies in
Europe and America.
“In these times when so many lives are being lost … you still have to fight for
all these missiles for various air defenses. You beg for them, squeeze them out
by force,” he said.
His outrage that Ukraine’s allies are losing interest has struck a bitter chord
this winter. The West’s reluctance to give us security guarantees makes us feel
the Kremlin’s crimes are being normalized. Watching Greenland only makes us more
afraid. Many Ukrainians no longer believe international law can do anything to
rein in the world’s superpowers. Might is right, once again.
We are living through what happens when an unchecked superpower is allowed to
kill at will. Russia’s goal is to break our defiance, mentally and physically.
Weapons designed to sink warships are being turned against our power plants,
government buildings and apartments.
KEEP GOING
When you’re forced to shiver in the dark for so long, deprived of sleep by
nightly missile barrages, you can quickly slide into despair.
“What can I do to cheer you up, Mom?” I asked via a late-night WhatsApp message.
“Do something with Putin,” she replied sarcastically, adding she can handle
everything else. That means getting up and working every day, no matter how cold
or miserable she feels.
Veronika Melkozerova/POLITICO
Whenever workers manage to restore the grid after yet another attack, the light
brings with it a brief moment of elation, then a huge to-do list. We charge our
gadgets, fill bottles and buckets with water, cook our food — and then put it
out on our balconies.
What’s inspiring is the genuine sense that people will carry on and keep the
country running — even though there’s no end in sight to this sub-zero terror.
Just do your job, pay your rent, pay your taxes, keep the country afloat. That’s
the mission.
So much of the city functions regardless. I can get my granny an emergency
dental surgery appointment the same day. Recently, when I went for my evening
Pilates — ’cause what else you gonna do in the dark and cold — I saw a woman
defiantly getting a manicure in her coat and hat, from a manicurist who wore a
flashlight strapped to her head.
Bundled-up couriers still deliver food, but the deal is they won’t climb beyond
the fifth floor, so those of us up on the 14th have to go down to meet them.
Personally, I have access to any kind of food — from our iconic borscht to
sushi. I can charge my gadgets and find warmth and shelter at a mall down the
street. The eternally humming generators, many of them gifts from Ukrainian
businesses and European allies, rekindle memories of a European unity that now
seems faded.
Critically, everything comes back to the resilience of the people. Amid all the
despair, you see your fellow Ukrainians — people labeled as weak, or bad
managers — pressing on with their duties and chores at temperatures where
hypothermia and frostbite are a real danger.
That’s not to say cracks aren’t showing. The central and local governments have
been passing the buck over who failed to prepare Kyiv for this apocalypse. Some
streets are covered with ice, with municipal services having to fight frost and
the consequences of Russian bombing at the same time.
But there’s a real solidarity, a sense that all of us have to dig in — just like
our army, our air defenses, our energy workers and rescue services. I find it
impossible not to love our nation as it endures endless murderous onslaughts
from a superpower. No matter how hard the Russians try to make our lives
unbearable, we’re going to make it.
BRUSSELS — Donald Trump’s address to the World Economic Forum in Davos on
Wednesday will help determine the tone of Europe’s response to the U.S.
president’s tariff threats as leaders desperately search for an off-ramp from
the standoff.
European governments are holding out hope they can lower the temperature and get
Trump to abandon his vow to slap punitive tariffs on European countries that
have opposed the sale of Greenland to the U.S. POLITICO spoke to 11 diplomats
and two EU officials, all of whom said they want to avoid retaliation and are
betting that a diplomatic solution to the crisis can still be found.
“The focus is getting the ball rolling in Davos. Then, we will take stock” at an
emergency EU leaders’ summit convened for Thursday, said one EU diplomat. “The
pressure needs to come down.”
Trump’s announcement on Saturday, in which he threatened six EU countries plus
the U.K. and Norway with additional 10 per cent tariffs as of next month because
they haven’t supported his designs on Greenland, a semi-autonomous territory in
the Kingdom of Denmark, has sparked the biggest rupture in transatlantic
relations in decades.
A key reason the EU is loath to come out swinging is that no one knows whether
Trump will actually follow through on his threats — and they are terrified of
needlessly exploding already-frayed transatlantic ties, according to the
diplomats.
All the diplomats and EU officials POLITICO spoke with cautioned that it was too
early to threaten to deploy the EU’s Anti-Coercion Instrument, or “trade
bazooka,” an idea being championed by French President Emmanuel Macron.
Wielding the instrument — an all-purpose tool meant to deter other countries
from using trade tactics to extort concessions in other areas — still faces
significant opposition.
The leader of the EU’s biggest political force, the European People’s Party
group, said at an internal meeting on Monday that the option should be off the
table and that the EU must be tough with the Americans in private but deescalate
in public, according to two people in the room. German Foreign Minister Johann
Wadephul and his Italian counterpart Antonio Tajani took a similar line at the
same meeting.
“We need to be very moderate because our goal is not to fight with the
Americans. Our goal is to strengthen our economies.” Tajani told POLITICO. “We
want to talk” with the Americans.
MEP Nicola Procaccini, Italian Prime Minister Giorgia Meloni’s right-hand man in
the European Parliament, added: “We have to avoid the escalations.”
Three diplomats POLITICO spoke with said the tool was still being considered —
but as a last-resort option that requires more consideration within capitals.
Ambassadors on Monday relayed a growing resolve to hit back that had emerged
from their three-hour meeting on Sunday.
“The mood is shifting,” said a senior EU diplomat. “We need to be stronger and
firmer. He [Trump] probably respects the show of force more than the hand that
you extend to him because this is for him a sign of weakness.”
In parallel, European embassies in Washington are coordinating among themselves
to reach out to key U.S. industries and firms that would be hit by potential EU
countermeasures in an effort to build pressure on Trump to abandon the plan,
according to two of the diplomats. They are also reaching out to members of
Trump’s entourage and to Republicans running for reelection in mid-term
elections in the U.S. in November.
“What we are trying to do is influence members of Congress,” said the senior EU
diplomat above, who was in the room when ambassadors held their emergency
meeting on Sunday evening. “They are Republicans, they are up for reelection in
November. They have to think about their audiences at home. We are trying to
convince them to do something.”
“European patience and tolerance are at an all-time low. But that doesn’t mean
that collectively we would be prepared to use” the full force of the EU’s trade
weapons, said a national official. “We’re trying to deescalate this week.”
Zoya Sheftalovich and Nicholas Vinocur reported from Brussels; Max Griera
reported from Strasbourg. Gerardo Fortuna, Gabriel Gavin, Jacopo Barigazzi and
Seb Starcevic contributed reporting.
BRUSSELS — The trade war is back.
Donald Trump’s threat to impose tariffs on European countries over Greenland has
blown up last year’s transatlantic trade truce and forced the EU into a familiar
dilemma: hit back hard, or try to buy time.
On paper, Brussels has options.
It could target politically sensitive U.S. exports like Republican-state
soybeans. Or it could unleash its trade “bazooka,” the Anti-Coercion Instrument.
Here are the actions that EU leaders can consider when they gather for an
emergency summit on Thursday:
HITTING BACK AGAINST U.S. PRODUCTS
Retaliatory tariffs on €93 billion worth of U.S. goods are still sitting in the
EU’s pantry. These date back to Trump’s first round of tariffs last year and
were frozen for six months in August.
This package will automatically kick into force on Feb. 7 unless the Commission
proposes to extend the freeze and the 27 EU countries agree with that. Such a
suspension can happen very quickly, however, as the Commission typically sounds
out support from capitals several times a week.
Part of the package targets distinctively American products like Levi’s jeans,
Harley Davidson motorcycles and Kentucky bourbon. Other goods would be targeted
because they originate in states that lean towards the Republican side of the
spectrum. A tariff on soy beans, for instance, would target the red state of
Louisiana from which House Speaker Mike Johnson hails.
DEPLOYING THE TRADE “BAZOOKA”
The biggest weapon in the EU’s arsenal is its Anti-Coercion Instrument. This
all-purpose tool is meant to deter other countries from using trade tactics to
extort concessions in other areas.
With it, Brussels can impose or increase customs duties, restrict exports or
imports through quotas or licenses, and impose restrictions on trade in
services. It also can curb access to public procurement, foreign direct
investment, intellectual property rights and access to the bloc’s financial
markets.
But in a case like this, it would take a few months to first clear diplomatic
hurdles between the Commission and the Trump administration.
Because it has never been triggered before, the EU is in uncharted waters. That
is especially true for the dynamics between the Commission and national
capitals. Brussels needs to propose launching the mechanism, and would only do
so if it knows enough capitals will agree. France is keen, but Germany and other
countries? Not so much.
Thomas Lohnes/Getty Images
“It’s one of the cards,” but “it’s really not the first in the line that you
use,” Lithuanian Finance Minister Kristupas Vaitiekūnas told POLITICO in an
interview.
PLAYING THE CHINA CARD
Canadian Prime Minister Mark Carney did something unprecedented last Friday.
Turning the page on the acrimonious relationship between Canada and China born
out of the arrest of a high-profile Huawei executive, the Canadian leader struck
a preliminary trade deal with Beijing to liberalize imports of Chinese electric
vehicles in exchange for a steep reduction in tariffs on Canadian agricultural
goods.
Carney didn’t mention Trump by name, but the message was clear: Canada has other
partners, and it won’t sit quietly while Washington tries to strong-arm it.
A blueprint for Brussels? It’s not that simple. While the EU has tried to thread
the needle on its trade relations with Beijing — the Asian country remains its
second-largest trading partner — policymakers are keenly aware of the
competitive threat posed by China, Inc.
Germany’s automotive industry is reeling from high energy prices and fierce
competition from China (now the world’s top automotive exporter). In general,
overcapacity — the term for China’s dizzying output of products that, unable to
be absorbed by its domestic market, are sold abroad — keeps EU business leaders
up at night.
Compared with Canada, for the EU China is a “whole different can of worms,” said
trade expert David Kleimann. “The Chinese are outcompeting us on all of our main
exports and domestic production,” he said. “We will need more barriers, more
managed trade with China.”
AN ASSET FIRESALE
America’s enormous debt pile is one Achilles heel. The U.S. loves to spend, and
Europeans, in turn, snap up that debt. George Saravelos, head of foreign
exchange research at Deutsche Bank, said that European public and private sector
entities hold a combined total of $8 trillion of U.S. stocks and debt — “twice
as much as the rest of the world combined.”
“In an environment where the geoeconomic stability of the western alliance is
being disrupted existentially, it is not clear why Europeans would be as willing
to play this part,” the analyst wrote in a note to clients.
If European governments order their banks and pension funds to dump their
holdings, that would almost certainly spark a financial crisis, sending
America’s borrowing costs soaring. The ensuing financial Armageddon would engulf
Europe as well, though. The firesale of financial assets would crush prices, and
European lenders would book huge losses — the financial equivalent of nuclear
mutually assured destruction.
Increasing decoupling from the U.S. financial system looks likely, but a violent
wholesale break is extremely unlikely.
PLAYING FOR TIME
Restraint is the EU’s weapon of choice for now. “The priority here is to engage,
not escalate, and avoid the imposition of tariffs,” Olof Gill, deputy chief
spokesperson for the European Commission, said on Monday.
Under their trade deal struck last year, the United States has already lowered
tariffs on most EU products to 15 percent, while the EU has yet to make good on
its pledge to cut its tariffs on U.S. industrial goods to zero. That’s because
Trump’s threats have derailed a vote in the European Parliament on lowering
tariffs for U.S. products.
While this stalemate lasts, EU companies actually benefit from lower costs while
the reverse is not true for their American counterparts.
“Trade continues to flow, investment continues to flow,” Gill added. “So we need
to be very sensible in how we approach the difference between a threat and
operational reality.”
With Trump trying to drive a wedge between European leaders by threatening
tariffs against some countries, including France and Germany, while sparing
others, like Italy, maintaining cohesion will be a huge challenge. Any serious
retaliation, such as wielding the bloc’s trade “bazooka,” the Anti-Coercion
Instrument, would require very broad support.
WHAT COMES NEXT
The U.S. Supreme Court might rule on some of Trump’s tariffs as soon as Tuesday.
If the administration loses the case, Trump would have to deal with the fallout
while he’s attending this week’s World Economic Forum in Davos.
“On a purely economic warfare basis, that would play in our favor,” said
Kleimann. “But we haven’t considered Trump’s ambitions to actually put boots on
the ground.”
At Davos, Trump might meet with Commission President Ursula von der Leyen,
although no bilateral is yet confirmed. Von der Leyen will speak at Davos on
Tuesday; Trump is due to arrive the day after.
Then on Thursday, EU government leaders hold an emergency summit in Brussels to
discuss transatlantic relations and the latest tariff threats. The meeting is
not expected to create a glitzy attack plan but rather to sound out whether the
EU should indeed target the U.S. goods or maybe shoulder its trade bazooka.
By Feb. 1, the U.S. tariffs on the European allies would kick in, if Trump
follows through on his threats. A week later, the EU’s retaliation package
automatically kicks in if no solution is found.
If that happens, we really will be in a trade war.