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After 12 hours as President of the United States, Donald J. Trump had already signed 40 Executive Orders, including the withdrawal from the Paris Agreement and the World Health Organisation.

This alarming attitude made it clear that the European Union is bracing for significant challenges that could reshape its economic, political, and energy landscape. Among the many challenges the EU may have to face in the coming months (or hours), we can mention at least three areas to follow.

Looming tariffs and trade uncertainty: Trump’s proposed tariffs pose one of the biggest threats to the EU, particularly Germany. The U.S. President has threatened 10–20% tariffs on European imports, targeting industries like automotive manufacturing. The German car industry, already under strain from global headwinds, could face job losses as manufacturers might relocate production to the U.S. to mitigate costs. Additionally, the potential for a trade war could increase inflation and strain consumer spending across the eurozone.

Energy dependency: Europe’s energy sector faces critical choices as Trump pushes the EU to buy more American oil and liquefied natural gas (LNG). With the EU already dealing with reduced Russian gas supplies, U.S. exports could consolidate their position as Europe’s primary energy source. However, this shift may grant the U.S. significant pricing power, leaving Europe vulnerable to fluctuations in global energy markets. Trump’s strategy aligns with his administration’s focus on fossil fuel production, further complicating Europe’s climate goals.

Economic and political repercussions: a weakening euro and higher import costs from tariffs risk sparking a fresh wave of inflation in Europe. Rising energy prices could compound the cost-of-living crisis for EU citizens, while uncertainty surrounding Trump’s foreign policy adds to the bloc’s concerns. For instance, Trump’s pledge to end the Ukraine-Russia war within 24 hours underscored his unpredictable negotiation style, leaving EU leaders unsure about the implications for regional security and energy markets.

Despite the challenges, Trump’s policies could push European Member States toward greater unity. Leaders like the EU Commission President Ursula von der Leyen have emphasized the importance of pragmatic negotiations while protecting EU interests. Member State solidarity could counterbalance Trump’s aggressive trade and energy strategies in this volatile environment.

The EU’s response will likely shape its economic resilience and geopolitical standing in the years ahead. As Trump’s administration redefines U.S.-EU relations, Europe must navigate carefully to safeguard its principles and adapt to new realities.

Written by: Cristina Ceccarelli