Some European officials woke up to election results on Wednesday “not wanting to believe” them, several sources told CNBC.
“But I am not as shocked as last time.” Many European leaders did not enjoy Trump’s style of confrontational leadership during his first presidency, and there were several moments of tension with the former White House leader.
As a result, many in Brussels celebrated the victory of Joe Biden in 2020, hoping for a better engagement.
Any additional tariffs could further pressure the already moribund economic growth levels across the EU.
‘Worst economic nightmare’ In a research note on Wednesday morning, ING analysts said that Europe’s “worst economic nightmare” has come true with the election of Trump.
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European officials have been quick to congratulate Donald Trump on his return to the White House after he defeated Democratic opponent Kamala Harris, despite the stark reality that new economic warfare may be imminent.
More than a year has been spent by European diplomats and their leaders preparing for the possibility of a Trump victory, with an increasing emphasis on measures that could shield the European economy from future trade conflicts.
Several sources told CNBC that some European officials woke up to the election results on Wednesday “not wanting to believe.”.
A transatlantic relationship is so delicate that one EU official, who wished to remain anonymous, stated, “I am seeing it, [and] not wanting to believe.”. But this time, I’m not as surprised. “.”.
There were a number of tense moments with the former White House leader, and many European leaders disliked Trump’s combative leadership style during his first term. As a result, many in Brussels rejoiced over Joe Biden’s 2020 win, anticipating greater participation.
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Due to the delicate nature of the relationship, a second EU source who wished to remain anonymous stated: “Once more, it is not great.”. “”.
“At least, I am not as surprised [as in 2016],” the source acknowledged, echoing the sentiments of the former official. “.”.
Leaders of the EU will meet on Thursday.
On Wednesday morning, the first EU leaders to congratulate Trump were Hungarian Prime Minister Viktor Orban, Spanish Prime Minister Pedro Sanchez, Italian Prime Minister Giorgia Meloni, French President Emmanuel Macron, and European Commission President Ursula von der Leyen.
Not everyone in Europe is equally concerned about Trump. According to reports, Viktor Orban, the prime minister of Hungary, has previously expressed his admiration for Trump and stated that if Trump were elected, he would open a bottle of champagne.
On Thursday and Friday, EU leaders will convene in Budapest, the capital of Hungary, for a regular meeting that will give them a chance to talk about their future plans for the transatlantic relationship.
Trump has stated that the European Union would “pay a big price” for not purchasing enough American goods and threatened to impose an additional 10% in tariffs on European countries.
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European countries rely heavily on trade with the United States. The United States and the EU. S. . are the world’s largest bilateral trade and investment relationship; according to data from the European Commission, the EU’s executive branch, this relationship peaked in 2021 at 11.2 trillion euros ($1.29 trillion).
The already weak economic growth rates throughout the EU could be further strained by any additional tariffs.
“A preliminary conversation [about the U.S. A. A third unnamed EU source told CNBC Wednesday morning about the European Political Community (EPC) meeting that will begin in November: “election] in Budapest.”. Seven.
The third diplomat stated, “We will see what kind of rhetoric [Trump] has, but if it is not very different, the main challenge will be Ukraine.”. The same diplomat stated, “Maintaining European unity is our top priority.”.
“The worst economic nightmare.”.
ING analysts stated in a research note on Wednesday morning that the election of Trump has resulted in the “worst economic nightmare” for Europe.
The economy of the euro zone may be forced from slow growth into a full-blown recession by an impending new trade war. Due to its heavy reliance on trade with the United States, the German economy is already struggling. A. The analysts, led by James Knightley, stated that they would be especially negatively impacted by tariffs on European automobiles.
Given the internal difficulties that many European governments face, it is unclear whether Trump could actually lead to deeper integration, even though European politicians have stated that they are ready for a second Trump presidency. Europe is probably going to hold off until Trump actually enacts his policies. “.”.
Addressing the annual meetings of the IMF in Washington, D.C. German Finance Minister Christian Lindner forewarned last month that retaliation might occur if the U. A. started a conflict with the European Union over trade.
“We must use diplomacy to persuade whoever takes over the White House that it is not in the United States’ best interests.”. A. “We would have to consider retaliation if we had a trade conflict with [the] European Union,” he added. “.”.
