European Union Business Leaders Rally for Bold ‘Europe First’ Agenda as U.S. Protectionism Looms Under Trump’s 2nd Term

For months, European Union business leaders have closely observed Donald J. Trump’s resurgence, as he champions an “America First” economic policy featuring protectionism and pledges for business-friendly tax and regulatory reforms.

With the U.S. presidential inauguration less than two months away, European executives and policymakers are now intensifying their efforts in Brussels, urging leaders to adopt a similar mantra: “Put Europe First.”

European Union Leaders Call for a United Economic Front

The potential impact of a second Trump presidency has galvanized Europe’s business community, with fears that bold U.S. economic policies could leave Europe lagging even further behind.

At a business conference in Paris this week, hundreds of corporate chiefs and lobbying groups from France, Germany, and Italy gathered to strategize.

Patrick Martin, president of Medef, France’s largest business trade group, warned, “A new American president is taking power who is, let’s say it, suspicious and skeptical toward Europe. Europe has two months to get ready. After that, there will be a shock.”

France’s Prime Minister, Michel Barnier, echoed these concerns.

Addressing the crowd, he declared, “We need a European awakening. We have been fairly naïve. Today, we need to start saying, ‘Europe First.’”

Mario Draghi’s $900 Billion Investment Proposal

A key focus at the Paris conference was a report by Mario Draghi, the former president of the European Central Bank, urging Europe to increase public investment by nearly $900 billion annually.

The funds, Draghi suggested, should target sectors like technology, defense, and green energy to bolster competitiveness.

Italy’s Foreign Minister, Antonio Tajani, highlighted the urgency of action, noting that several of his European counterparts had recently agreed to explore issuing European Union bonds to finance such investments.

“Now is the time to move ahead with the idea of issuing new European Union bonds,” Tajani said.

High Energy Costs Erode European Union’s Competitiveness

Energy costs remain a significant challenge for Europe, which has struggled to compete with the U.S., where energy prices are significantly lower.

Emanuele Orsini, president of Cofindustria, Italy’s main business trade organization, shared the dire situation facing Italy’s ceramics industry: “Makers of Italian tiles for roofing, flooring, and a range of other products, from bricks to exquisite ceramic vases, have lost ground to foreign competitors and will not recover unless Europe eases regulation.”

Draghi’s report highlighted a concerning statistic: since 2019, the European Union had implemented 13,000 new business regulations compared to just 3,000 in the United States.

Concerns Over Tariffs and Trade Wars

While the exact approach of a potential second Trump administration toward European Union remains uncertain, many executives and policymakers expressed apprehension about possible tariffs.

However, with his “America First” approach, Trump is unlikely to give any concession to European businesses unless he gets something in return for the US, which is reflected in his Cabinet picks.

Roberta Metsola, president of the European Parliament, cautioned, “There’s an instinct to become more protectionist. But my fear is it’s a race to the bottom.”

Foreign Minister Tajani emphasized the need for dialogue, stating, “We need to talk to the Americans about trade, trade, trade.”

He announced plans to visit Washington after Trump’s inauguration to prevent a trans-Atlantic trade war.

A Call to Action for Europe

Despite the challenges, some business leaders believe Trump’s policies might spur Europe into action.

Christian Diemer of the German BDI trade group expressed concerns about indirect competition: “I’m more concerned about the huge tariffs the U.S. wants to put on China. Chinese goods meant to be exported to the U.S. will be pushed into the European markets.”

French Economy Minister Antoine Armand concluded the conference with a warning: “We need to change the pace at which we act or industries will disappear.”

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