US-Europe Relations: Trump’s decision shakes Europe; Additional taxes imposed on 8 European countries

• Can Europe move forward without America?
• America is 1.5 times ahead of Europe in economic strength
• After Shia, Europe depends on US energy

US-Europe Relations: US President Donald Trump has now started imposing taxes on his allies. In an attempt to seize Greenland, Trump has imposed a 10% tax on eight European countries that are part of NATO. Trump is so openly imposing taxes on many European countries, while on the other hand, the European Union is not taking any concrete action. Is Europe really completely dependent on America and if so why? Let’s find out the answer to these questions..

The US is the security and backbone of NATO, as it provides more than 70% of NATO’s military capabilities. Furthermore, Europe’s nuclear deterrent is entirely dependent on the US, Britain and France. Moreover, the US has the missile defenses, satellite intelligence and logistics to counter countries like Russia. If the US withdraws, NATO will remain only on paper.

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Europe has abundant tanks and military capabilities, but lacks air supremacy, drone warfare, long-range missile systems and global military logistics, and the US is meeting these demands. These are modern needs. Europe also depended on the US during the Ukraine war. America is roughly 1.5 times larger economically than Europe. The total European economy is estimated to be $19.99 trillion in 2025, while the US economy alone is estimated to be $30.5 trillion in 2025. Furthermore, most European countries do not spend even 2% of their GDP on defence. If America withdraws, Europe will have to increase its defense budget two to three times, which will increase taxes and reduce welfare spending.

Europe is now completely dependent on America for energy. Europe has become the largest importer of US energy, especially after the imposition of several sanctions on Russia. Europe has increased its LNG imports from the US several times. Germany, France, the Netherlands and Italy have also built new LNG terminals and are importing large quantities of the commodity from the US.

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Europe is now looking to America for crude oil. Europe’s crude oil imports from the US, Norway and the Middle East have increased. Crude oil exports from the US to Europe have reached record levels. Apart from energy, Europe also depends on the US for supplies of high-tech chips. The US supplies chips needed for defense, AI, satellite and missile systems.

By gradually reducing its dependence on the US, Europe can become as self-sufficient as ever. However, this could take 15 to 20 years and Europe will have to prioritize things. These include creating a joint EU military, investing heavily in the defense industry, taking the lead from Germany and France, and reducing dependence on the US for technology.