In his first major international address since returning to the White House, US President Donald Trump made clear that his second term would maintain his hardline approach on trade, defense, and global diplomacy. Speaking via videoconference at the World Economic Forum in Davos, Trump issued bold demands to European allies, focusing on military spending, trade practices, and energy policies. His remarks, emblematic of his “America First” agenda, could strain relations with Europe, already wary of his return to the global stage.

Trade and NATO: A Renewed Push for ‘America First’

Trump’s speech highlighted his continued commitment to reshaping global trade to benefit the United States. He demanded that businesses prioritize manufacturing in the US or face hefty tariffs. “Come make your product in America, and we will give you among the lowest taxes of any nation on Earth. But if you don’t, you will have to pay a tariff,” Trump stated, emphasizing his administration’s tax cuts for domestic manufacturers, lowering corporate tax rates from 21% to 15%.

Turning his focus to NATO, Trump revived his longstanding call for higher defense contributions from alliance members. While NATO countries had previously committed to spending 2% of their GDP on defense, Trump demanded that they raise this threshold to 5%. This could reignite tensions within NATO, as many countries have only recently met the 2% target set in 2014.

Energy and Ukraine: Trump’s Controversial Proposals

Perhaps the most contentious part of Trump’s speech involved his comments on energy and the war in Ukraine. He controversially linked oil prices to the ongoing conflict, suggesting that lowering oil prices would force Russia to end its military operations in Ukraine. Trump promised to push OPEC and Saudi Arabia to reduce oil prices as a means of pressuring Russia, while reiterating his willingness to engage directly with Russian President Vladimir Putin to end the war.

In terms of energy supply, Trump sought to reassure European allies that US liquefied natural gas (LNG) exports would continue, despite fears that the US might prioritize its domestic market. He committed to fast-tracking approvals for energy projects, including LNG plants, to stabilize prices and maintain US exports to Europe.

The Road Ahead for US-Europe Relations

Trump’s remarks at Davos signal that his second term will continue to challenge traditional alliances and trade relationships. While Europe has shifted its focus toward new trade partnerships and stronger NATO unity, Trump’s aggressive stance on defense spending and trade could reignite tensions. For European leaders, his speech was a stark reminder that the “America First” approach is back—and it will be anything but business as usual.