**Brussels**: Following the inauguration of President Trump, US-EU ties have rapidly deteriorated, with increased tariff threats and strategic rifts emerging. Analysts caution that this shift may jeopardise global collaborations and economic stability, prompting the EU to seek deeper ties with alternative partners while boosting defence budgets.
Following the inauguration of President Donald Trump, the dynamics of the relationship between the United States and the European Union (EU) have swiftly deteriorated. Observers have noted a growing sentiment in Europe towards increased vigilance against the policies of the Trump administration, alongside a rising inclination for strategic independence from US influence.
Kang Young-sook, head of the Advanced Economies Department at the International Financial Center, indicated that recent developments, such as Trump’s threats of tariff increases against Europe and the exclusion of European nations from critical peace negotiations regarding Russia and Ukraine, have contributed to cooling ties between the US and the EU. In her analysis, published by E-Daily, Kang stated, “The repeated threats of tariff increases against Europe by President Trump and the exclusion of Europe from the Russia-Ukraine peace negotiations are rapidly cooling US-EU relations, leading to dramatic changes in the EU’s economic and security environment.” She highlighted the importance of both government and business sectors being cognizant of the rising unpredictability and associated risks.
The Trump administration has intensified its tariff threats against the EU, citing the considerable trade surplus enjoyed by the US. This shift is seen as part of a broader withdrawal from existing decarbonisation policies, likely creating rifts between the traditionally aligned US and European nations. As the US appears to be distancing itself, there are concerns that this may hinder the collaborative efforts to present a united front against challenges posed by countries like China and Russia, while also potentially delaying global environmental initiatives.
Kang pointed out that the US’s firm stance on China, maintained through both the Trump and Biden administrations, has not caused significant discord. However, the tangible decline in the EU’s partnership with the US carries serious implications for the region. She asserts, “There will be an increasing realization of the need for vigilance against the Trump administration’s unilateralism and the necessity for strategic independence in regions outside the EU.”
In response to these developments, the EU has been seeking to bolster trade and investment ties with nations such as India and Vietnam while attempting to negotiate with the US. With the growing sentiment that the US may withdraw from green policies, EU officials are contemplating a similar slowdown in their own decarbonisation efforts. Moreover, plans are reportedly being made within the EU to significantly increase its defence budget to mitigate reliance on US arms imports.
Kang cautioned that a potential increase in global trade barriers could adversely affect countries like South Korea, which depend heavily on trade openness. She projected that the policies from the Trump administration may catalyse heightened efforts within nations to strengthen economic and security collaborations with non-US allies. Furthermore, EU businesses that have already adapted to current environmental regulations may find themselves facing increased financial strains due to changing policy landscapes.
Amid these tensions, concerns persist regarding the ongoing peace negotiations related to the Russia-Ukraine conflict, which have notably excluded Ukraine and EU participation. Analysts, including Kang Bong-joo, a deputy expert at the National Financial Center, have observed that the current proposals seem more focused on prolonging conflicts rather than fostering genuine peace, warning that this approach may yield negative repercussions for both Ukraine and Europe, in addition to potentially escalating global instability.
Source: Noah Wire Services
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