U.S. President Trump (L) and French President Emmanuel Macron join hands during the final press conference of the G7 Summit in Biarritz, France, on August 26, 2019.
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European officials were quick to congratulate Donald Trump after he defeated Democratic rival Kamala Harris to return to the White House, even as they were well aware that a new round of economic war may be coming.
European diplomats and their respective Leaders have been preparing for the possibility of Trump taking office More than 12 months of victories, there is growing focus on policies that can protect the European economy from potential trade disputes.
Several sources told CNBC that some European officials woke up on Wednesday “reluctant to believe” the election results.
“I saw this (and) didn’t want to believe it,” said an EU official, who spoke on condition of anonymity due to the sensitivity of transatlantic relations. “But I’m not as shocked as last time.”
Many European leaders disliked Trump’s confrontational leadership style during his first term as president and had several tense moments with the former White House leader. As a result, many in Brussels celebrated Joe Biden’s victory in 2020, hoping for better contacts.
Another EU source said on condition of anonymity: “It’s not good again.”
But the source echoed the sentiments of former officials, admitting, “At least, I’m not as surprised as I was in 2016.”
EU leaders will meet on Thursday
European Commission President Ursula von der Leyen, French President Emmanuel Macron, Spanish Prime Minister Pedro Sánchez, Italian Prime Minister Giorgio Meloni and Hungarian Prime Minister Viktor Orban One of the first EU leaders to congratulate Trump Wednesday morning.
The continent as a whole is not entirely worried about Trump. Hungarian Prime Minister Viktor Orban has expressed his admiration for Trump in the past, reportedly saying he would open a If Trump is re-elected, he will receive a bottle of champagne.
EU leaders are scheduled to hold a regular meeting in the Hungarian capital Budapest on Thursday and Friday, which will give them an opportunity to discuss future plans for the transatlantic relationship.
Trump threatened to impose an additional 10% tariff on European countries, and also said that the EU would “pay a huge price” for not buying enough American goods.
Trade with the United States is vital to European countries. The European Union and the United States have The world’s largest bilateral trade and investment relationshipIn 2021, the figure reached a record high of 1.2 trillion euros ($1.29 trillion), according to the European Commission, the EU’s executive arm.
Any additional tariffs could put further pressure on already moribund levels of economic growth across the EU.
A third anonymous EU source told CNBC on Wednesday morning that “the first discussions on the results of the US election will take place in Budapest” at the European Political Community (EPC) meeting that will begin on November 7.
“We will see what[Trump]says, but if not, the main challenge will be Ukraine,” a third diplomat said. “Our focus is on keeping Europe united,” the diplomat said. explain.
‘Worst economic nightmare’
in a research report exist On Wednesday morning, ING analysts said that with Trump’s re-election, Europe’s “worst economic nightmare” has become a reality.
“The looming new trade war could push the euro zone economy from sluggish growth into full recession. The already troubled German economy, which relies heavily on trade with the United States, will be hit hard by European car tariffs.” Led by James Knightley team of analysts.
“While European politicians claim to be ready for Trump to be re-elected, it is unclear whether Trump can actually push for deeper integration, given the domestic challenges faced by many European governments. Europe may wait for Trump to actually What policies are implemented.
German Finance Minister Christian Lindner warned of possible retaliation if the United States launched a trade war with the European Union in a speech at the International Monetary Fund’s annual meeting in Washington last month.
“We need to use diplomacy to convince those in the White House that a trade conflict with the EU is not in the best interests of the United States,” he added. “We will have to consider retaliation.”
