The European Union is bracing for challenging interactions with Donald Trump's potential return as US President. A primary concern is averting an economic war, particularly in light of Trump's inclination to impose higher tariffs on imports to bolster the US manufacturing sector. Such measures could negatively impact the European economy, notably the German automotive industry. In response, the EU is considering strategic investments and reforms, including a savings and investment union and enhanced integration of European capital markets. Additionally, the EU aims to forge an energy agreement with the US to mitigate tariff impacts, potentially increasing imports of US liquefied natural gas.
To strengthen its economic stance, the EU plans to reduce bureaucracy, develop a new internal market strategy, and boost research and development spending to 3% of GDP by 2030. European leaders emphasize the importance of competitiveness and collaboration, with Germany poised to lead these efforts. The EU also acknowledges the necessity of maintaining cooperative transatlantic relations to avoid trade conflicts that could weaken economic stability across Europe. This strategic approach seeks to balance economic resilience with diplomatic engagement amid potential shifts in US trade policy.
