Trump at Davos: NATO 5% push, tariff warnings for Europe

In his first major international address since returning to the White House, US President Donald Trump made it clear that his second term would see no softening of his stance on trade, defence, or global diplomacy.

Speaking via videoconference at the World Economic Forum in Davos on Thursday, Trump issued a stark warning to European allies, demanding higher military spending, vowing to protect US industry with tariffs, and suggesting that lowering oil prices could end the war in Ukraine.

Delivered in Trump’s typically blunt style, the speech signalled a renewed push for his ‘America First’ agenda, one that could further strain relations with European leaders already wary of his return.

Trade was at the forefront of Trump’s remarks, as he reiterated his long-standing demand that businesses prioritise US manufacturing.

His message was simple: companies that choose to produce outside America would face financial consequences.

“My message to every business in the world is very simple: 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,” he declared.

Trump announced that companies manufacturing within the United States will benefit from a corporate tax reduction, dropping from 21% to 15%. He claimed this would be "by far the lowest tax rate" among the world’s largest and most economically powerful nations.

He then turned his criticism towards the European Union, describing its regulatory system as an obstacle to investment.

Drawing from his own business experience, Trump recounted a failed real estate project in Ireland, where he secured national approval within a week but was told that EU-level clearance would take five to six years.