The bloc's defence push could potentially be used as leverage in a trade standoff with Trump, according to Stephane Sejourne, the EU's commissioner for industrial strategy, who noted Europe's economy needs to be in good health to allow for more security spending.

Trump used Davos to warn Europe, demanding NATO allies raise defence spending to 5% of GDP and threatening tariffs on companies not manufacturing in the US. He linked lower oil prices to ending the Ukraine war and assured LNG exports to Europe would continue.