Europe is at a pivotal moment in the way it approaches global affairs. The new realities introduced by former President Donald Trump only further confuse the waters on that front. Both of these unfortunate scenarios are preventable if European leaders come together and show leadership. They need to do so against what many perceive as an abuse of US power. Analysts suggest that Europe can only hope to safeguard its interests and autonomy by collaborating closely with like-minded nations such as Canada, Japan, Australia, Brazil, and India.
We are entering a time where Europe must laboriously craft new trade agreements at the local level. It’s high time to reset the ground rules for global trade. We know that the global landscape is changing rapidly. There can be little question that the era of a western-led “rules-based international order” is dead and gone. Europe’s leaders will have to face these new geopolitical facts, instead of holding on to the great dream of the past.
Mark Carney, a leading voice in these discussions, made the case for collective action. He noted, “When we only negotiate bilaterally with a hegemon, we negotiate from weakness. We accept what’s offered. We compete with each other to be the most accommodating.” This illustrates the need for Europe to come together and show a united front in global negotiations.
Trump’s repeated desire to buy Greenland isn’t just a bad joke, it’s dangerous. This issue of massive importance in Europe deserves no less than a robust response. Critics write that Europe should not just turn down President Trump’s proposed purchase of Greenland, but implement its new anti-coercion instrument. This tool would empower Europe to implement extensive economic and regulatory measures against any foreign power attempting to coerce its member states.
European leaders are advised to avoid any deals like those trumpeted by Trump. Far from harming US interests, these actions are believed by many to only strengthen US dominance. The sentiment is clear: Europe must remain vigilant and not allow itself to be lulled into complacency by any perceived concessions from the US administration.
A very positive consensus, we think, is developing across Europe. They are prepared to support Denmark in retaliating with €93 billion of retaliatory tariffs on US products if Trump escalates and attacks EU member states. Implementing this step would serve as a clear signal that Europe cares about its own sovereignty and interests, even if the United States continues to push them otherwise.
European leaders are cautioned against relying on outdated notions of Atlanticism, which suggest that a few compliments or concessions will appease Trump’s relentless demands. Carney highlighted this concern, stating, “This is not sovereignty. It’s the performance of sovereignty while accepting subordination.” He implored countries trapped at the center of great power competition to struggle for attention and favor. He urged them to work together and help create a strong third way.
As Europe faces up to these realities, it should adopt a strategic economic mindset, with a diverse trade and supply chain at the core. The European Commission faces critical decisions regarding its engagement with the Mercosur deal, weighing the potential economic benefits against the risks of compromising its principles.
In another sign of increasing friction, the European Parliament yesterday chose to delay a vote on implementing tariff cuts on US goods. This vote was initially tied to the unfair trade deal Trump forced through last year. This delay is a sign of increasing concern over the impact of these agreements on European sovereignty and economic prosperity.
As Europe considers its future path, it needs to be clear and committed to its aspiration of unity and strategic autonomy. The decisions made in the coming months will not only shape Europe’s relationship with the United States but determine its role on the global stage amidst rising tensions between major powers.