Europe’s Trump Playbook: Offer Carrots but Warn That You Have a Big Stick

Published On Feb 7, 2025, 12:01 AM

The European Union has been preparing for a possible trade dispute with the U.S. under President Trump, specifically for potential tariffs on European goods. The EU is looking to avoid an all-out trade war while targeting politically sensitive sectors and may affect American products substantially. European officials are inclined to negotiate but are also ready to retaliate if necessary, emphasizing that a trade war would harm both the U.S. and the EU. Ursula von der Leyen, president of the European Commission, assured readiness to deal with increased tariffs from the U.S. administration.