How can Europe respond to an increase in tariffs on American imports?
Economic agenda of the second presidency of Donald Trump, whose inauguration will take place in a few days, presents significant challenges for the European Union (EU), particularly in terms of trade. Despite political fragmentation, political uncertainties in certain countries, and heterogeneous economic situation with significant growth disparities among member states, the EU must develop a common strategic response. Given the importance of trade between the two regions, deteriorated trade relations would be detrimental for both , but likely more for the United States than for the EU, especially for the manufactur ed goods sector. In the short term, in the face of potential or actual American threats, the EU must act collectively using its trade tools. If negotiations fail, an emergency aid plan will be necessary to support vulnerable sectors. However, it is also crucial to maintain ongoing dialogue with the new government of the United States. In the long term, a strategic response to more conflictual transatlantic relations appears necessary, as well as the revival of the competitiveness of the European single market through an integrated industrial policy and, finally, a diversification of trade to reduce dependence on the United States and China. With a market of 450 million inhabitants, rapidly growing trade, and a network of trade agreements that has strengthened in recent years, the EU seems capable of providing a firm response to the United States; the most challenging part will be doing so while preserving a resilient relationship.