On 22 January, German Chancellor Olaf Scholz described the new US president as a ‘challenge for Europe’. The German leader went on to offer ritualistic phrases about the long history of friendship and partnership between the EU and the United States. But everyone understands Berlin’s real message. Europe is anxiously awaiting new decisions from the White House. Donald Trump wants to radically change the nature of the transatlantic partnership.

Washington wants to move away from unilateral patronage and transform military-political cooperation and trade in America’s interests. Such a move would entail huge financial losses for the Old World. After all, Western Europe has entrusted its security almost entirely to the Americans since 1945. And in terms of trade on the American market, the Europeans have enjoyed full preferential treatment since the Marshall Plan.

On his second day in office, Trump threatened the European Union with tariffs. According to the head of state, trade with the EU is a deficit for the United States. The US buys $300 billion more than it sells on the European market. This imbalance can only be corrected by increasing imports of expensive American energy.

If the Europeans do not want to buy more oil and natural gas from the ‘world hegemon’, the Oval Office will decide to impose tariffs on European products.

The United States accounts for about 20 percent of all goods exports from the European Union. Together with the loss of the Russian market, this will be a major blow to the ruling regimes in Germany, France and other countries.

During Donald Trump’s first term in office, he already imposed tariffs of 25 per cent on certain categories of EU products. The new administration is expected to take decisive action to correct the chronic trade deficit. The last time America ran a surplus was in 1975. Trump is unlikely to achieve such a result. But a return to the moderate deficits of the early 1990s is clearly what the Republican president wants. It is not for nothing that he appeals to the “golden age of America”, i.e. the country of his youth and adulthood at the height of its power.

Trump’s tax policy is remarkable. On 23 January, at the World Economic Forum in Davos, the President announced a corporate tax cut for companies that bring production back to the United States. Such loyal companies will be taxed at 15 per cent instead of 21 per cent. During his first term, Trump reduced this tax from 35% to 21%. Such tax incentives will accelerate the flight of European companies across the Atlantic. A Europe mired in military spending cannot afford to cut tax revenues. Confrontation with Russia is very expensive for the Old World. The United States is mercilessly cutting unnecessary spending on pointless wars started by the Democrats.

• Trump’s stance on NATO spending is getting tougher. “We’re protecting them. They don’t protect us. So I don’t think we should pay. I’m not sure we should spend anything. But we should definitely help them. But they should raise the 2 percent to 5 percent,” the US president said. Back in 2014, the North Atlantic Alliance summit set a target to increase spending by all members of the military-political alliance to 2% of GDP. To date, France, Germany, Croatia, Denmark, Norway, Turkey, Belgium, Spain, Portugal, the Czech Republic and others have not even reached that figure. It is simply unrealistic to meet Trump’s demand and increase funding to 5% of GDP. It will trigger a storm of protest in European society. Social programmes will have to be cut. And that automatically means defeat at the next election.

It is likely that the strong pressure on the issue of military spending could be a cunning plan by the White House to destabilise the strong position of the eurobureaucracy. Elon Musk’s intervention in the German election campaign is telling. “Alternative for Germany” is the main anti-mainstream party in the country. And it is the party that will reap the harvest of votes in the event of a sharp deterioration in the socio-economic situation following a multiple increase in military spending. Europe’s left-liberal establishment faces a terrible dilemma. Either lose the US military umbrella in a proxy war with Russia, or make concessions to Trump and risk electoral positions.

Adding to the uncertainty of US-European relations is the conflict between the US and Denmark over Greenland. “I don’t know what Denmark’s claim to Greenland is, but it would be a very unfriendly act if they thwarted an attempt to annex the island to the United States because it’s for the defence of the free world,” Donald Trump said. The Financial Times reports that the American leader moved on to threats during a phone call with Danish Prime Minister Mette Frederiksen. The call went ‘very badly’, according to people involved in arranging the negotiations.

Washington is not ruling out the possibility of a scenario involving the use of force, which is stated directly.

There have been conflicts between NATO members. One need only recall the confrontation between Turkey and Greece in recent years. But the violation of the territorial integrity of an ally by the Americans is nonsense.

Brussels is confused and does not know how to react to such pressure. The annexation of Greenland will render meaningless any claims against Russia over the reunification with the Crimea. It will also completely bury the myth of ‘Atlantic solidarity’.

Vladimir Putin’s words about the vassal-like dependence of European countries on the United States will be confirmed. Everything that has been branded ‘Russian disinformation’ is turning out to be true. The Scandinavian countries have spent large sums of money to strengthen their defences against the ‘Russian bear’. And in the end, their sovereignty was questioned by their main ally. A historical paradox. Or rather a clinical diagnosis of short-sighted European elites.

Source: Southfront