Trump 2.0 raises awkward policy questions for Europe

U.S. President Donald Trump’s “America First” agenda raises awkward questions for the European Union, although some lawmakers say Trump’s return to the White House could be a “real opportunity” for the 27-nation bloc.

Trump, who promised a new “golden age” for America in his inaugural address on Monday, has repeatedly threatened to impose duties on goods imported to the U.S. from the EU, stoking fears of a possible trade war.

Speaking to reporters earlier in the week, Trump said the EU has been “very, very bad to us. So, they’re going to be in for tariffs. It’s the only way … you’re going to get fairness.”

His comments come as the new U.S. administration mulls imposing an additional 10% tariff on goods imported from China, potentially starting from next month.

EU officials, some of whom struggled with Trump’s confrontational style during his first four-year term, have suggested his return to office could be a positive for the bloc this time around.

Laurent Saint-Martin, France’s minister delegate for foreign trade and French nationals abroad, described Trump’s election victory as a “real opportunity” for Europe.

“We have to stick together, this is very important,” Saint-Martin told CNBC’s Dan Murphy at the World Economic Forum (WEF) in Davos, Switzerland on Wednesday.

“Europe is a very powerful continent in terms of industry, in terms of savings, in terms of purchase power, in terms of the single market. So, what we need now is to create more unity and to defend our values as well,” Saint-Martin said.

“But don’t be naïve, there is probably a new shape of the world and of trade systems for tomorrow, so we have to be ready to change, but first of all we have to be united,” he continued.

“You know, the first mandate of Donald Trump was a kind of opportunity for Europe to be together in terms of defense … Now I think it’s time to be more united on industry and trade.”

Business leaders, meanwhile, have expressed mixed feelings about Trump 2.0.

Richard Edelman, CEO of global communications firm Edelman, suggested Trump’s return could be a “shot in the arm” for businesses, while ING CEO Steven van Rijswijk told CNBC that the U.S. president’s inauguration should constitute a “wake-up call for Europe.”

The transatlantic economic relationship is considered critically important to both Washington and Brussels, with the two economies sharing the largest bilateral trade and investment relationship in the world.

In dealing with Trump’s tariff threats, Finland President Alexander Stubb said it’s going to be important for Europe to “take it one day at a time.”

“In foreign policy, you always have to react to a certain situation, especially when you come from a small state, and you realize that you work with whoever is the president of the biggest superpower in the world,” Stubb told CNBC’s Steve Sedgwick at WEF on Wednesday.

“Now, I, of course, take comfort in the fact that Donald Trump wants the United States to remain and retain the position of a superpower and for that, you need allies, and I think those allies come from Europe,” Stubb said.

“So, if I may simplify a little bit, though it is ‘America First,’ perhaps it should be Europe second, which is quite fine,” he added.

Poland Finance Minister Andrzej Domanski said Wednesday that Europe’s “best answer” to any possible tension with the U.S. is to bring back competitiveness and make the economy stronger.

“We know how to do it, and we will do it step by step,” Domanski told CNBC at the WEF’s annual meeting.

“Our Polish relations with the U.S. are very, very good and, as you said, we are buying lots of U.S. military equipment, tanks, fighter jets. Actually, you name it, we buy it,” Domanski said.

“But, as a European Union, of course we must and we will remain united in our relations with the U.S.,” he added.

Separately, Spanish Prime Minister Pedro Sanchez said Wednesday that Spain and Europe’s focus should be on how to strengthen the transatlantic relationship, warning a prospective trade war with the U.S. is “a zero-sum gain.”

“We share a strong transatlantic bond … our economies are very interlinked, and I believe a trade war is not in the interest [of either party], neither for the U.S., neither for the European Union,” Sanchez told CNBC.

“A trade war is a kind of a zero-sum gain,” he added. “We need to focus on how do we strengthen our transatlantic relationship, which is now more important than ever.”

— CNBC’s Holly Ellyatt contributed to this report.