For months, European business leaders have been observing Donald J. Trump’s resurgence in U.S. politics, characterized by a reassertion of his “America First” economic policy, which emphasizes protectionism and favorable tax and regulatory measures.
With the U.S. presidential inauguration approaching, these leaders are intensifying their lobbying efforts in Brussels, advocating for a policy shift towards “Europe First.”
The potential for a second Trump presidency, coupled with his bold promises to disrupt the global economic landscape, has galvanized the European business community. Concerns are growing that Europe may be left trailing in the wake of U.S. economic strategies.
A recent business conference in Paris saw hundreds of corporate executives and lobbyists from major economies such as France, Germany, and Italy converge to address these challenges. They described the possibility of Trump’s election as a “wake-up call” for Europe, urging immediate action to avert economic repercussions.
Their strategic focus includes boosting investments across the European Union in sectors like defense, technology, and green energy, advocating for regulatory reforms, and promoting the establishment of a unified capital market.
Patrick Martin, president of Medef, emphasized the need for Europe to prepare for an incoming U.S. administration that may hold skepticism towards the continent. “Europe has two months to get ready. After that, there will be a shock,” he warned.
High-ranking political and economic officials from leading eurozone countries attended the conference, expressing solidarity with business concerns and pledging to advocate for proactive measures in Brussels.
French Prime Minister Michel Barnier called for a “European awakening,” acknowledging previous naivety and emphasizing the need for a united front under the banner of “Europe First.”
Conference participants highlighted a report by Mario Draghi, recommending that Europe enhance public investment by approximately $900 billion annually in critical sectors such as technology and defense.
Furthermore, Italy’s foreign minister, Antonio Tajani, noted a consensus among several European leaders to pursue the issuance of new European Union bonds aimed at financing essential investments for innovation.
The current economic climate presents challenges for Europe, significantly weaker now than in 2016, as the region grapples with the aftermath of the Covid pandemic and rising energy prices exacerbated by geopolitical tensions.
High energy costs have placed European companies at a disadvantage compared to their U.S. counterparts, facing energy prices that are substantially lower due to U.S. policies. Executives expressed concern that stringent regulations under the European Green Deal could further hinder competitiveness against manufacturers in Asia.
Concerns were voiced specifically regarding the Italian ceramics industry, with leaders arguing that without regulatory relief, many businesses could face collapse.
Since 2019, the EU has enacted a significant number of new regulations—13,000 compared to just 3,000 in the United States—adding to the operational burdens faced by European companies.
Unclear trade policies under a potential Trump administration raise questions about tariffs, with many experts anticipating a preference for bilateral agreements.
Mr. Tajani indicated plans to engage with U.S. officials post-inauguration, aiming to avert potential trade conflicts detrimental to Italian exports, which constitute over 10 percent of its total exports to the United States.
Concerns about a trans-Atlantic trade war were echoed by Roberta Metsola, president of the European Parliament, who cautioned against an instinctive shift toward protectionism.
While some executives remain cautious, believing it premature to panic, others noted that Trump’s tariff strategies might inadvertently curtail aggressive implementations to prevent domestic inflation spikes.
Nevertheless, the dynamics of the strong U.S. dollar could offer European exporters a competitive edge, potentially counterbalancing the impact of tariffs.
European executives expressed apprehension over Trump’s tariff proposals targeting China, fearing that this could lead to an influx of Chinese goods into European markets as a result of redirected trade.
Overall, European leaders acknowledge the need for expedited and efficient actions to protect their industries against an increasingly protectionist global landscape. French Economy Minister Antoine Armand highlighted the urgency for Europe to adapt swiftly or risk losing vital sectors.