U.S. President Donald Trump (left) 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 also came to the grim realization that a new economic war could be just around the corner after Donald Trump defeated Democratic rival Kamala Harris to return to the White House. Regardless, he immediately expressed his congratulations.
European diplomats and national leaders have been preparing for a Trump victory for more than 12 months, placing increasing emphasis on policies that protect Europe’s economy from potential trade conflicts.
Sources told CNBC that some European officials woke up to the election results on Wednesday and “didn’t want to believe it.”
“I’m seeing it and I don’t want to believe it,” said one EU official, who declined to be named due to the sensitive nature of transatlantic relations. “But I’m not as shocked as last time.”
Many European leaders did not like Trump’s confrontational leadership style during his first term as president, and there were several moments of tension with the former White House leader. As a result, many in Brussels celebrated Joe Biden’s victory in 2020 and hoped for better engagement.
“Again, it’s not great,” said another EU official, who requested anonymity due to the sensitivity of the relationship.
But the person echoed the former official’s sentiments, admitting: “At least I’m not as surprised as I was in 2016.”
EU leaders meet on Thursday
European Commission President Ursula von der Leyen, French President Emmanuel Macron, Spanish Prime Minister Pedro Sánchez, Italian Prime Minister Giorgia Meloni and Hungarian Prime Minister Viktor Orban were among the first EU leaders to meet on Wednesday morning. He congratulated President Trump.
Concerns about Trump are not entirely shared across the continent. Hungarian Prime Minister Viktor Orbán has spoken of his admiration for Trump in the past, reportedly previously saying he would pop champagne with Trump if he was elected.
EU leaders are scheduled to hold regular meetings in the Hungarian capital Budapest on Thursday and Friday, an opportunity to discuss future plans for the transatlantic relationship.
President Trump threatened to impose additional 10% tariffs on European countries, but also said the European Union “will have to pay a heavy price” for not buying enough American goods.
Trade with the United States is important for European countries. The EU and the US have the world’s largest bilateral trade and investment relationship, which reached a record 1.2 trillion euros (1.29 trillion euros) in 2021, according to data from the European Commission, the EU’s executive body. dollar) reached.
Additional tariffs could put further pressure on already moribund economic growth levels across the EU.
A third anonymous EU official said on Wednesday morning that “the first discussions[on the results of the US presidential election]will take place in Budapest” regarding the European Political Community (EPC) meeting starting on November 7. told CNBC.
“We’ll see what kind of rhetoric[President Trump]uses, but even if it doesn’t change much, the main challenge will be Ukraine,” said a third diplomat. “Our main focus is to maintain European unity,” the diplomat said.
“The worst economic nightmare”
Analysts at ING said in a research note Wednesday morning that President Trump’s election has made Europe’s “worst economic nightmare” a reality.
“A new trade war is looming, potentially pushing the eurozone economy from low growth to full-scale recession. Germany’s already struggling economy, which is heavily dependent on trade with the United States, will , will be particularly hard hit by tariffs on European cars.” A team of analysts led by James Knightley.
“European politicians claim to be preparing for a second Trump term, but given the domestic challenges facing many European governments, it is unlikely that Trump will actually encourage deeper integration. It remains unclear whether this will be possible, and Europe will have to wait and see what kind of policies Mr. Trump will actually implement.
Last month, German Finance Minister Christian Lindner warned at the IMF’s annual meeting in Washington, D.C., that there could be retaliation if the United States starts a trade war with the European Union.
“Whoever is in the White House will need diplomatic efforts to convince them that it is not in the best interest of the United States to engage in trade conflict with the European Union,” he said.“We also need to consider retaliation.” Dew,” he added.
