EU Faces Uncertainty as Trump’s Return Raises Economic and Security Concerns

European leaders adopt a cautious approach to Trump's presidency, grappling with potential trade tariffs, security shifts, and internal political challenges.

• European Union leaders are taking a wait-and-see approach as Donald Trump prepares to assume the U.S. presidency for a second term, with no clear strategy in place to address his policies.
• Trump’s proposed tariffs on European goods, ranging from 10% to 20%, could severely impact EU economies, with Germany’s automotive sector singled out as a target for trade measures.
• European officials worry about Trump’s campaign promises to reduce support for Ukraine, which could shift the balance of the war and strain EU security initiatives.
• Internal EU divisions, political transitions, and economic challenges complicate efforts to present a unified response to anticipated U.S. policy changes under Trump.
• Experts warn that Trump’s return could disrupt global trade norms and lead to significant economic losses for the EU, with forecasts of GDP declines and a potential recession.

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