US President Donald Trump delivers remarks on AI infrastructure in the Roosevelt Room of the White House in Washington, US on January 21, 2025.
Carlos Barria | Reuters
American president Donald Trump‘s “America first” raises the agenda awkward questions for the European Union, although some lawmakers say Trump’s return to the White House could be a “real opportunity” for the 27-member bloc.
Trump, who promised a new “golden age” for America in his inaugural address on Monday multiple times threatened to impose tariffs on goods imported into the US from the EU, fueling fears of a possible trade war.
Speaking to reporters earlier this week, Trump said the EU had been “very, very bad to us. So they’re going to be included in the tariffs. That’s the only way … you’re going to get fairness.”
His comments come as the new US administration considers the imposition an additional 10% of the tariff on goods imported from China, potentially from next month.
EU officials, some of whom he fought with Trump’s confrontational style during his first four-year term, they suggested his return to office could be positive for the bloc this time around.
Laurent Saint-Martin, the French Minister Envoy for Foreign Trade and French Citizens Abroad, described Trump’s election victory as a “real opportunity” for Europe.
“We have to stick together, this is very important,” Saint-Martin told CNBC’s Dan Murphy at the World Economic Forum (WEF) in Davos, Switzerland on Wednesday.
Ursula von der Leyen, President of the European Commission, at a press conference after a meeting of the Christian Democratic Union party in Berlin, Germany, Monday, February 19, 2024.
Bloomberg | Bloomberg | Getty Images
“Europe is a very powerful continent in terms of industry, in terms of savings, in terms of purchasing power, in terms of the single market. So what we need now is to create more unity and also defend our values,” Saint-Martin said.
“But don’t be naive, there is probably a new shape of the world and trading systems for tomorrow, so we have to be ready for change, but above all we have to be united,” he continued.
“You know, Donald Trump’s first term was kind of an opportunity for Europe to be together in terms of defense… Now I think it’s time to be more united in industry and trade.”
Business leaders, meanwhile, expressed mixed feelings about Trump 2.0.
Richard Edelman, CEO of global communications firm Edelman, suggested that Trump’s return could be a “shot in the arm” for businesses, while ING CEO Steven van Rijswijk told CNBC that the US president’s inauguration should be a “wake-up call for Europe”.
‘America first’ — and Europe second?
The transatlantic economic relationship is considered critically important to both Washington and Brussels, with the two economies sharing the largest bilateral trade and investment relationship in the world.
In the face of Trump’s threats of tariffs, Finnish President Alexander Stubb said it would be important for Europe to “take it one day at a time”.
President of Finland Alexander Stub speaks as he arrives at the 2024 NATO Summit on July 10, 2024 in Washington, DC.
Andrew Harnik | News Getty Images | Getty Images
“In foreign policy, you always have to react to a certain situation, especially when you come from a small country and you realize you’re working with someone who is the president of the biggest superpower in the world,” Stubb told CNBC’s Steve Sedgwick. WEF on Wednesday.
“Now, of course, I’m comforted by the fact that Donald Trump wants the United States to remain and maintain its position as a superpower, and for that you need allies, and I think those allies are coming from Europe,” Stubb said.
“So, if I can simplify a little bit, even though ‘America comes first,’ maybe it should be Europe second, which is perfectly fine,” he added.
‘Zero gain’
Polish Finance Minister Andrzej Domanski said on Wednesday that Europe’s “best response” to any possible tensions with the US is to restore competitiveness and strengthen the economy.
“We know how to do it and we’re going to do it one step at a time,” Domanski told CNBC at the WEF’s annual meeting.
“Our Polish relations with the US are very, very good and, as you said, we buy a lot of American military equipment, tanks, fighter jets. Actually, you name it, we buy it,” Domanski said.
“But, as the European Union, of course we must and will remain united in our relations with the US,” he added.
Separately, Spanish Prime Minister Pedro Sanchez said on Wednesday that Spain and Europe should focus on strengthening transatlantic ties, warning that a potential trade war with the US was a “zero-sum gain”.
“We share a strong transatlantic bond … our economies are very interconnected and I believe a trade war is not in our interest [of either party]neither for the US, nor for the European Union,” Sanchez told CNBC.
“A trade war is kind of a zero-sum win,” he added. “We must focus on how to strengthen our transatlantic relationship, which is now more important than ever.”
— CNBC’s Holly Ellyatt contributed to this report.
