This year\u2019s summit of the World Economic Forum (WEF) in Davos, Switzerland, began under the shadow of Donald Trump\u2019s potential second term in the White House.<\/p>\n
The former president, Donald Trump, is set to address Davos participants via video conference today. Meanwhile, his tariff threats and their potential impact on the global economy have become a central topic of discussion.<\/p>\n
European Commission President Ursula von der Leyen warned in her speech on Tuesday that the global economy is \u201cbeginning to break along new lines.\u201d She emphasized that \u201cit is in no one\u2019s interest to sever ties in the global economy\u201d and opposed a \u201crace to the bottom\u201d in global trade, referencing both China and the US.<\/p>\n
Leyen stressed that the EU and the US must negotiate to preserve trade relations, given the \u20ac1.5 trillion trade volume and the scale of transatlantic investments. \u201cOur priority will therefore be to engage early, discuss common interests, and be ready to negotiate. We will be pragmatic but always stand by our principles. We will defend our interests and uphold our values,\u201d she said.<\/p>\n
EU divided on response to Trump<\/b><\/p>\n
Belgian Prime Minister Alexander De Croo, speaking in Davos, adopted a pragmatic stance, suggesting that the US must address its trade deficit. \u201cMaybe we can buy more from your side and try to link what is economically favorable for us with what is geopolitically favorable for our American allies,\u201d De Croo said.<\/p>\n
However, Trump has not yet imposed tariffs on the EU. EU officials told the Financial Times<\/i> (FT) that they believe business leaders who funded Trump\u2019s campaign have dissuaded him from targeting Europe due to the potential economic fallout. One official noted, \u201cIt\u2019s the same agenda as last time. It will be very transactional. He will look at what is good for the US and US industry. Last time, there were many exemptions, even on steel tariffs because they needed our materials.\u201d<\/p>\n
A \u2018wake-up call\u2019 for Europe<\/b><\/p>\n
One of the key challenges for Europe in a Trump-led world is to enhance its \u201cstrategic autonomy\u201d and competitiveness. A special roundtable discussion hosted by Massimo Andolina, CEO of Philip Morris International Europe, and Claus Strunz, CEO of Euronews, and moderated by Christoph Keese, CEO of World Minds, highlighted the need for Europe to become more competitive, innovative, and united.<\/p>\n
Charles Michel, former President of the European Council, warned of the risks of a trade war, stating, \u201cIf a trade war starts, it means that everyone will be poorer.\u201d<\/p>\n
Some, however, see Trump\u2019s potential return as an opportunity. Laurent Saint-Martin, France\u2019s Minister for Foreign Trade, told CNBC that Trump\u2019s election victory could be a \u201creal opportunity\u201d for Europe. \u201cWe have to stay together; it\u2019s very important,\u201d he said, emphasizing Europe\u2019s industrial strength, savings, purchasing power, and the single market. \u201cI think it is time to be more united in terms of industry and trade,\u201d he added.<\/p>\n
\u2018America First, then Europe\u2019?<\/b><\/p>\n
European business leaders have mixed feelings about Trump\u2019s potential return. Richard Edelman, CEO of global communications firm Edelman, suggested that Trump\u2019s leadership could be \u201cinvigorating\u201d for businesses. Meanwhile, ING CEO Steven van Rijswijk described it as a \u201cwake-up call for Europe.\u201d<\/p>\n
Finnish President Alexander Stubb emphasized the importance of Europe adopting a pragmatic, day-to-day approach to Trump\u2019s tariff threats. \u201cIn foreign policy, especially when you come from a small state and you realize that you are working with whoever the president of the world\u2019s biggest superpower is, you always have to react to a particular situation,\u201d Stubb told CNBC\u2019s Steve Sedgwick at the WEF.<\/p>\n
Stubb added that Trump\u2019s desire for the US to remain a superpower means he needs allies, and those allies \u201ccome from Europe.\u201d He quipped, \u201cIf I simplify it a bit, it\u2019s \u2018America first,\u2019 but maybe it should be Europe second, which is just as well.\u201d<\/p>\n
Praise for competitiveness<\/b><\/p>\n
Polish Finance Minister Andrzej Doma\u0144ski argued that Europe\u2019s \u201cbest answer\u201d to potential tensions with the US is to restore competitiveness and strengthen its economy. \u201cWe know how to do this, and we will do it step by step. Poland\u2019s relations with the US are very, very good, and as you said, we buy a lot of US military equipment\u2014tanks, fighter jets. In fact, we buy everything you can think of,\u201d Doma\u0144ski said.<\/p>\n
However, he stressed that the EU \u201cneeds to be united\u201d in its relations with the US.<\/p>\n
Spanish Prime Minister Pedro S\u00e1nchez also emphasized the importance of strengthening transatlantic relations, warning that a trade war with the US would be a \u201czero-sum game.\u201d \u201cWe share a strong transatlantic bond… our economies are very interconnected, and I believe that a trade war is in the interest of neither the United States nor the European Union,\u201d S\u00e1nchez told CNBC.<\/p>\n
He added, \u201cWe need to focus on how to strengthen our transatlantic relationship, which is more important now than ever.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
This year\u2019s summit of the World Economic Forum (WEF) in Davos, Switzerland, began under the shadow of Donald Trump\u2019s potential second term in the White House. The former president, Donald Trump, is set to address Davos participants via video conference today. Meanwhile, his tariff threats and their potential impact on the global economy have become […]<\/p>\n","protected":false},"author":1,"featured_media":7391,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"footnotes":""},"categories":[175],"tags":[2113,3520,1123,5291,610,891,2518,4192,829,503,5292,5293,1411,2360,1739,787,5277,461,2011,821,5290],"class_list":["post-7390","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-diplomacy","tag-alexander-stubb","tag-competitiveness","tag-davos","tag-economic-shifts","tag-eu","tag-europe","tag-european-commission","tag-geopolitical-strategy","tag-global-economy","tag-headline","tag-industrial-unity","tag-laurent-saint-martin","tag-strategic-autonomy","tag-tariffs","tag-trade-deficit","tag-trade-war","tag-transatlantic-relations","tag-trump","tag-ursula-von-der-leyen","tag-us","tag-world-economic-forum"],"yoast_head":"\n