Europe's strategic options to counter US economic coercion under Trump 2.0
By
Agathe Demarais, Tobias Gehrke, José Ignacio Torreblanca
Slow-proofed and worth the wait. Worth its weight in flour.
Summary
The article analyzes the deteriorating state of transatlantic relations under Trump 2.0, focusing on US economic coercion against Europe through tariffs, financial weaponization (dollar dependency), and geopolitical pressure (Greenland annexation threats, Ukraine settlement exclusion). It outlines Europe's strategic options to resist, including mitigation, deterrence, and escalation strategies to reduce vulnerability and emerge stronger.
Key quotes
· 3 pulledIn the 17 months since his inauguration, US president Donald Trump has applied tariffs on European exports to America; threatened to annex Greenland; and tried to negotiate a Ukraine settlement without consulting Europe.
The bad news for Europeans is twofold. First, there are 31 more months of Trump 2.0 to go. Second, Washington has solid levers to weaponise Europe's ties to America in the spheres of finance, through the bloc's reliance on the dollar.
Here is how Europeans can resist the pressure and emerge stronger for it.
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