Trump accuses EU of treating US ‘very, very unfairly’

by Thomas Moller-Nielsen

Donald Trump accused the European Union of treating the United States “very, very unfairly” on Thursday, but suggested that tariffs would only be imposed on foreign manufacturers if they fail to boost investment in the US.

In a wide-ranging speech delivered via video link to the World Economic Forum in Davos, the US president criticised the EU’s “large” corporate tax and VAT rates and condemned the bloc’s failure to address its significant trade surplus in goods with the US.

“From the standpoint of America, the EU treats us very, very unfairly, very badly,” said Trump, whose second term at the White House began on Monday.

“They have a large tax... They don’t take our farm products, and they don’t take our cars, yet they send cars to us by the millions.”

The EU ran a trade surplus in goods of €156.6 billion with the US in 2023, but a €104 billion deficit in services, according to EU data.

Trump’s campaign pledge to impose a “universal” 10-20% duty on all US imports has alarmed European exporters. But echoing previous comments by his pick for US treasury secretary, Scott Bessent, the president suggested the threat is part of a broader negotiating strategy aimed at boosting US industry.

“If you don’t make your product in America, which is your prerogative, then very simply you will have to pay a tariff, differing amounts, but a tariff,” he said.

Trump also criticised the lengthy permitting procedure in the EU, claiming that it took a “five or six year wait just to get a simple approval” for an unspecified "big project".

He also denounced Brussels’ decisions to impose fines and pursue antitrust investigations into US tech firms, including Apple, Google, and Facebook.

“They’re American companies, and [the EU] shouldn’t be doing that,” Trump said.

Trump also repeated his call for NATO members to boost military spending to 5% of annual GDP, well above the alliance’s current 2% target, claiming the figure “is what it should have been years ago” and that European countries’ current rate of defence expenditure is “unfair to the United States”.

Trump, who enjoys close ties with far-right leaders in Italy and Hungary, also professed his “love" for Europe and said he wished to end Russia’s “horrible” war in Ukraine.

“I’m trying to be constructive because I love Europe, I love the countries of Europe”.

*first published in: Euractiv.com