At the World Economic Forum in Davos, U.S. President Donald Trump outlined his stance on key issues in international politics and economics. His speech covered five main topics: NATO defense spending, trade relations with Europe, the impact of oil prices on the war in Ukraine, LNG exports to Europe, and global economic reforms. These statements sparked widespread reactions among world leaders.
1. NATO: Demand to Increase Spending to 5%
Trump once again raised the issue of NATO funding, calling on member countries to increase defense spending from the current 2% of GDP target to 5%. “This is a fair contribution to collective security that should have been established long ago,” Trump stated.
He reminded that his previous administration had succeeded in achieving the 2% target for most NATO members but emphasized that in the face of new geopolitical challenges, this is no longer sufficient. According to him, the new goal would ensure sustainable protection for allies against growing threats.
Trump also proposed the creation of a new mechanism to monitor the targeted use of NATO defense funds to maximize the efficiency of military investments.
2. Trade: Tariffs for Non-U.S. Manufacturers
Trade relations were a central part of Trump’s speech. He urged international companies to relocate production to the U.S., promising significant tax benefits. “Lowering the corporate tax rate to 15% will be the best offer among the world’s leading economies,” he noted.
However, Trump warned that companies operating outside the U.S. would face high tariffs. He paid particular attention to the European Union, accusing it of discriminating against American goods and underscoring the need to revise trade agreements.
He also revealed plans to create a special fund to support companies returning production to the U.S., which he claimed would stimulate job creation and economic growth.
3. Ukraine and Oil: An Economic Solution to the Conflict
Trump proposed an unexpected perspective on resolving the war in Ukraine, stating that lowering global oil prices would be a key factor. “If oil prices drop, Russia will lose the funding source for its military actions,” he declared.
The president pledged to pressure OPEC and Saudi Arabia to achieve this reduction. He also expressed his willingness to negotiate with Vladimir Putin to seek a diplomatic resolution.
An interesting detail was his mention of plans to create an international energy consortium to monitor oil prices and prevent monopolistic dominance.
4. Energy: Continuing LNG Exports to Europe
Amid speculation about potential restrictions on LNG exports to Europe, Trump assured that supplies would continue. “We guarantee reliable energy supplies for our allies,” he said, addressing TotalEnergies CEO Patrick Pouyanné.
Trump also emphasized that his administration would accelerate the approval of new energy projects, including LNG terminals, to stabilize energy prices and enhance Europe’s energy security.
In his speech, he mentioned plans to develop a subsidy system for American energy companies to strengthen their positions in international markets.
5. Global Economic Reform
In conclusion, Trump announced plans to change global economic rules. He criticized the bureaucratic procedures in the EU, citing an example of his failed investment in Ireland, where project approval could take up to six years.
“The world needs to simplify processes that delay investments and growth,” Trump stressed, proposing the creation of new international standards to accelerate economic development.
Trump also added that he plans to initiate an international forum on regulatory simplification, which would serve as a platform for discussing reforms with world leaders and business representatives.
Donald Trump’s speech at Davos was a statement of the U.S.’s return to the global stage with an ambitious program of reforms and increased influence. His tough rhetoric, aimed at protecting national interests, has raised concerns in Europe but underscores an unwavering commitment to the “America First” principles.
For world leaders, this served as a reminder: Trump is back, and his approach to international relations remains resolute and uncompromising.
