
Global Implications of the First 100 Days of Trump 2.0 for Europe
April 28, 2025
The first 100 days of Donald Trump’s second term as President have been marked by significant policy shifts in trade and international relations. These changes have profound implications for the European Union (EU), affecting economic stability, security and diplomatic relations.
President Trump’s aggressive trade policies have initially reignited the risk of trade wars and economic uncertainty, particularly with China and the EU. This economic turbulence and potential extra costs have already restrained the EU’s economic growth, with industries such as automotive and agriculture facing significant challenges. The uncertainty surrounding trade agreements has also led to market volatility, impacting investments and lowering economic forecasts.
One notable consequence of the announced tariffs is the diversion of trade. With the United States imposing high tariffs, the EU has sought to diversify their global relationship and strengthen trade relations with other global partners, such as China and India. This shift aims to mitigate the impact of reduced access to the U.S. market and to diversify trade routes and dependencies and bolster the EU’s economic resilience. These agreements are designed to reduce dependency on the U.S. market and create new opportunities for EU businesses globally.
It is yet to be seen how the future of transatlantic trade relationships will evolve, but it seems certain that we will see a significant recalibration. The EU is currently seeking to salvage its trade relationship as much as possible with the United States, while simultaneously seeing their global trading landscape become more multipolar and evenly matched, with a greater alignment and interaction towards other regions of the world. This new trading world order is also likely to affect long-term geopolitical relationships.
One of the most critical policy areas affected by Trump’s second presidency is the Transatlantic Security Initiative. Trump’s skepticism towards NATO has created fissures within the alliance, undermining collective security efforts. Europe, which relies heavily on NATO and thus the United States for its defense strategy, now faces the daunting task of reassessing its security policies and significantly increasing its defense spending to stand on its own. A clear method towards a greater European autonomy has been created, although the willingness to invest the needed resources varies greatly from country to country—often depending on proximity to Russia.
From a security perspective, Europe is facing an internal debate on their defense investments—not so much about the direction, but rather on the ambitions and Europe’s future role, including which cooperation and capabilities are needed on the continent. This is seen as a major challenge, many countries for decades have enjoyed minimal spending on defense and security, hence the political will to reallocate resources from other parts of society are facing opposition in some countries.
Trump’s unilateral approach to foreign policy has led to strained diplomatic relations between the United States and the EU. His threat to U.S. involvement in the security alliance of NATO, the withdrawal from international agreements on climate change, health, and human rights has isolated the United States on the global stage. The EU, which has been a staunch advocate for these global initiatives, finds itself at odds with the United States, complicating diplomatic efforts and cooperation on critical global issues.
The rollback of environmental regulations and the declaration of a “national energy emergency” to boost fossil fuel production have significant implications for global climate efforts. The EU, committed to ambitious climate goals, faces challenges in maintaining its leadership in global climate policy without U.S. support. Similarly, Trump’s withdrawal from global health initiatives has disrupted collaborative efforts to address pandemics and health crises, leaving the EU to navigate these challenges independently.
The first 100 days of Trump’s presidency have undeniably reshaped the global order, with the EU bearing the brunt of these changes so far, but we may see China affected even more in the mid-term. As the EU navigates this new landscape, it must adapt its strategies to mitigate economic disruptions, reinforce its security policies and strengthen diplomatic efforts to uphold global initiatives. The coming months will be crucial for the EU as it seeks to maintain stability and continue its role as a key player on the global stage.
Overall, Trump’s presidency has posed significant challenges to the EU, necessitating strategic adjustments and diversification efforts. While the immediate impact has been disruptive, the EU’s proactive measures and global partnerships may help mitigate long-term effects and foster a more resilient trade environment and an increased security capacity on the continent, as public support for European cooperation has increased drastically across the continent because of the Trump administration’s policies.