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On January 21, 2025, US President Donald Trump delivered a speech on artificial intelligence infrastructure in the Roosevelt Room of the White House in Washington, USA.
Carlos Barria | Reuters
President of the United States Donald Trumpof”America First“Agenda proposed Awkward question For the European Union, though some lawmakers say Trump’s return to the White House could be a “real opportunity” for the 27-nation bloc.
Trump promises new “golden age“For America, in his inaugural address on Monday, repeatedly Threats to impose tariffs on goods imported from the European Union to the United States have stoked fears of a potential trade war.
Trump told reporters earlier this week that the EU “treats us very, very badly. So, they’re going to face tariffs. That’s the only way … you’re going to get fairness.”
His comments come as the new U.S. administration is considering implementing a An additional 10% tariff will be charged Targeting goods imported from China, possibly starting next month.
EU officials, some of whom struggling Trump’s confrontational style during his first four years in office suggests his return to office could have a positive impact on the EU this time around.
Laurent Saint-Martin, France’s minister responsible for foreign trade and the French diaspora abroad, described Trump’s electoral victory as a “real opportunity” for Europe.
“It’s very important that we all come together,” Saint-Martin told CNBC’s Dan Murphy at the World Economic Forum (WEF) in Davos, Switzerland, on Wednesday.
European Commission President Ursula von der Leyen during a press conference after the Christian Democratic Union meeting in Berlin, Germany, Monday, February 19, 2024.
Bloomberg | Bloomberg | Getty Images
“Europe is a very strong continent in terms of industry, savings, purchasing power and the single market. So what we need now is to build more unity and defend our values,” said San Martin.
“But don’t be naive, tomorrow’s world and trading system may take on new shapes, so we must be ready to change, but first we must unite,” he continued.
“You know, Donald Trump’s first term was an opportunity for Europe to unite on defense… Now I think it’s time to be more united on industry and trade.”
Meanwhile, business leaders have expressed mixed feelings about Trump 2.0.
Richard Edelman, chief executive of global communications company Edelman, said Trump’s return could be a “shot in the arm” for businesses, while ING CEO Steven · Steven van Rijswijk told CNBC that the inauguration of the US president should be a “wake-up call for Europe.”
“America No. 1”—Europe No. 2?
Transatlantic economic relations are after consideration This is crucial for both Washington and Brussels, as the two economies have the largest bilateral trade and investment relationship in the world.
In response to Trump’s tariff threats, Finnish President Alexander Stubb said it was important for Europe to “take it one day at a time.”
Finnish President Alexander Stub speaks as he arrives for the 2024 NATO Summit in Washington, DC, July 10, 2024.
Andrew Harnick | Getty Images News | Getty Images
“In foreign policy, you always have to react to a situation, especially when you come from a small country and you realize you’re working with the president of the biggest superpower in the world,” Staab told CNBC. ” World Economic Forum on Wednesday.
“Right now, I’m certainly relieved that Donald Trump wants the United States to remain a superpower, and to do that you need allies, and I think those allies are coming from Europe,” Stubb said.
“So, if I could simplify it a little bit, while it’s ‘America No. 1,’ maybe it should be Europe No. 2, which is fine,” he added.
“Zero sum gains”
Poland’s Finance Minister Andrzej Domanski said on Wednesday that Europe’s “best answer” to possible tensions with the United States is to restore competitiveness and strengthen the economy.
“We know how to do it and we’re going to do it step by step,” Domansky told CNBC at the World Economic Forum’s annual meeting.
“We in Poland have very, very good relations with the United States and, as you said, we are buying a lot of American military equipment, tanks, fighter jets. In fact, you name it, we are buying it,” Domanski said.
“But of course as an EU we must and we will remain united in our relationship with the United States,” he added.
Separately, Spanish Prime Minister Pedro Sanchez said on Wednesday that the focus of Spain and Europe should be on how to strengthen transatlantic relations and warned that a potential trade war with the United States was a “zero-sum gain.”
Sanchez told CNBC: “We have strong transatlantic ties… Our economies are closely linked, and I don’t think a trade war is in (anyone’s) interest, nor is it in the interest of the United States and the European Union.”
“A trade war is a zero-sum gain,” he added. “We need to focus on how to strengthen our transatlantic relationship, which is now more important than ever.”
—CNBC’s Holly Ellyatt contributed to this report.
