23.01.2025
How will Trump's rule affect European companies?
Key information:
- Donald Trump, on his return to the presidency, is challenging Europe on protectionism and potential trade wars.
- Its trade policies could affect key sectors of the EU economy, including the automotive industry, agriculture and technology.
- The U.S.-UK relationship after Brexit could affect the economy of the entire European Union.
- Europe is responding to Trump's protectionist measures by seeking to diversify its trade partnerships.
- In the geopolitical context, international tensions could affect the stability of the European market.
Details below!

With the start of Donald Trump's next term in office in 2025, economic relations between the United States and the European Union are embarking on a new path. His economic policies from the previous term suggest that we can expect a return to protectionist tendencies and a change in global trade dynamics. What could be the potential consequences for the European market?
Protectionism and trade wars
Based on Trump's previous actions, it can be speculated that new tariffs on products from the EU, such as steel, automobiles and agricultural products, may be reintroduced. Europe, which has strong export sectors, could be negatively affected by such decisions.
Scenarios for trade
- Reducing European car exports to the US.
- Increased tensions in the agricultural sector, especially in countries such as France and Italy.
- Potentially restricting European technology companies' access to U.S. markets.
Such changes could also lead to serious political tensions and force the EU to redefine its international trade strategy.
Impact on European economic sectors
Automotive
If Trump imposes higher tariffs on European cars, companies such as Volkswagen, BMW and Daimler may consider changing their export strategies. It is also possible to increase production in the U.S. to circumvent the new regulations. In the long term, such measures could affect employment in Europe, where automotive factories will be forced to reduce capacity, shifting some production to other continents. It could also have a knock-on effect on auto parts suppliers such as Bosch and Continental, leading to changes throughout the supply chain.
Agriculture
The introduction of tariffs on European agricultural products, such as cheese and wine, could lead to losses for producers in countries such as France, Italy and Spain. EU may have to look for alternative markets in Asia or South America. However, the process could take time, and the loss of the U.S. market will reduce profits for many European farmers, especially in the face of the changes that the Mercosur agreement. In addition, EU member countries may intensify their push for joint conservation measures, including subsidies or domestic trade preferences, to support their producers.

Technologies
The inclusion of European technology companies in a potential trade war could result in difficulties in accessing U.S. markets and an increase in the cost of manufacturing components. Companies such as Nokia and Siemens may be forced to invest more in research and development to become less dependent on U.S. suppliers. At the same time, trade tensions could prompt the EU to intensify work on local alternatives to US tech giants such as Amazon and Google, which could strengthen the European digital ecosystem. In the long run, however, this could increase the cost of innovation and reduce the pace of development in the technology sector.
Europe's responses to new economic challenges
Strengthen relations with other regions
The European Union may seek new trade agreements with Asia, Latin America and Africa to compensate for potential losses from US protectionism. Particular emphasis could be placed on developing strategic partnerships with China and India, which offer huge markets for European products. Cooperation with Africa, especially in the areas of infrastructure and technology, could open up new opportunities for European investors. At the same time, negotiations with Latin American countries such as Brazil and Argentina could strengthen trade in the agricultural and natural resources sectors.
Green technologies as a priority
Trump has already managed to pull the US out of climate initiatives, which gives the EU an opportunity to strengthen its leadership in renewable energy and green tech. Europe may see this as an opportunity to increase investment in the development of hydrogen, photovoltaic and wind energy technologies, which would not only strengthen its position in the global market, but also contribute to achieving ambitious climate targets. At the same time, European companies have the opportunity to use their technological advantage to export green solutions to other markets, including Asia and Africa, which would further strengthen their global competitiveness. Financial support for innovative clean tech startups can become a key component of a growth strategy.
The European Union may seek new trade agreements with Asia, Latin America and Africa to compensate for potential losses from US protectionism.

Applications for entrepreneurs
Companies can learn some key lessons from Trump's policies:
- Diversification of markets
U.S. protectionism may limit access to the U.S. market, requiring the search for alternative markets in Asia, Latin America or Africa.
- Revision of export strategies
Exporting companies, especially in the automotive, agricultural and technology sectors, may have to increase the location of production in the U.S. market to circumvent tariffs.
- Investments in innovations
Trade conflicts can force the development of local technologies and independence from U.S. suppliers, creating an opportunity for startups and R&D companies.
- Strengthening local partnerships
Building strong trade relations within the EU and strengthening cooperation among European businesses can be key in the face of external tensions.
- Green technologies as an advantage
Entrepreneurs in the renewable energy sector can take advantage of the gap created by the lack of U.S. commitment to climate initiatives to strengthen their position in the global market.
These findings point to the need for flexibility and proactivity in international risk management.

Speculation on the future of US-EU economic relations
If Trump's presidency in 2025 continues its protectionist approach, Europe may face the need to adapt quickly. The challenge will be to reduce dependence on the US, strengthen relations with other regions of the world, and invest in future technologies. The new economic reality may bring both challenges and opportunities for the European market.
The right company strategy is crucial in the face of coming changes, and if your company needs strategic consulting, get in touch with us!
Filip Gierczak
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