U.S. Presidential Inauguration: EU braces for incoming U.S. administration
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Top officials at the European Union say they are looking forward to deepening ties with the incoming U.S. administration. But behind the scenes, the EU has been preparing for what could be a very different relationship with its biggest trading partner. William Denselow reports from Brussels.

It's the largest bilateral trade and investment relationship in the world. Trade between the U.S. and EU stands at roughly 1.5 trillion dollars per year.

But incoming president Donald Trump claims Washington is getting a bad deal. He's threatened tariffs unless Europe reduces the trade deficit and buys more U.S. oil and gas. The EU's trade surplus for goods stood at over 150 billion dollars in 2023 but officials say that doesn't tell the whole story.

OLOF GILL EU Commission Spokesperson "The EU has a substantial trade in goods surplus with the U.S., whereas the U.S. has a substantial trade in services surplus vis-à-vis the EU."

Donald Trump has also threatened tariffs on EU member state Denmark unless it gives up the autonomous territory of Greenland citing national security concerns.

WILLIAM DENSELOW Brussels "EU officials say such threats are purely hypothetical and Commission President Ursula von der Leyen says she's looking forward to a positive engagement with the incoming Administration."

But that might come at a price. Trump has called for NATO allies in Europe to boost spending on defense to five percent of GDP compared to the current two percent benchmark.

SIMONS DIGGINS Former British Army Officer Defense Security and Military Analyst "We've been derelict in terms of what we spent on defense and I think what Trump has said not unreasonably is that if you expect us to support you, you expect the American umbrella to still be in place, the least you can do is pay for the support."

Trump assumes the presidency with war still raging on Europe's doorstep. The incoming U.S. administration has called for a quick resolution to the conflict in Ukraine and the EU says it's willing to step up if Washington isn't willing to continue its leadership role. But Ukraine's President has urged Trump to maintain support for Kyiv.

VOLODYMYR ZELENSKYY President of Ukraine "President Trump is a strong man and I want very much to have him on our side, for me it's very important, I want to discuss with him more details about this war."

With the promise of carrying out an America First agenda, the international community is bracing for a more protectionist president. French President Emmanuel Macron has warned that a world of trade wars could be approaching – chiefly between the U.S. and China. He calls it a moment of acceleration and the EU will have to buckle up. William Denselow, CGTN, Brussels.