Donald Trump’s election as US president has reignited concerns in Europe about trade, defence, and transatlantic relations. The president-elect has long criticised the European Union’s trade surplus with the United States, which grew to $208 billion in 2023, and has proposed tariffs of at least ten percent on all imports. Trump has also questioned whether the United States should continue to guarantee Europe’s security through NATO, and suggested that Europe should take on more responsibility for Ukraine’s defence.
In this op-ed released on 13 January 2025, Erik Jones and Matthias Matthijs highlight that while European leaders debate short-term responses to the incoming administration, the EU’s most pressing issues lie in its fragmented defence policy and structural economic inefficiencies. They argue that the EU must focus on long-term investments in industry and defence, drawing on recommendations from the Letta and Draghi reports on reforming the single market and enhancing competitiveness.
“Keeping more European savings in Europe, rather than exporting them abroad, will go a long way toward rebalancing the continent’s economy” they write.
The authors also stress that greater cohesion among member states and alignment with EU institutions are essential to addressing these challenges. Without such unity, the EU risks division and diminished influence in a volatile global landscape.
Read the full op-ed on Foreign Affairs.