{"id":1128,"date":"2025-04-11T14:30:24","date_gmt":"2025-04-11T14:30:24","guid":{"rendered":"https:\/\/www.insuracarelife.com\/blog\/as-trump-upends-global-trade-europe-sees-an-opportunity\/"},"modified":"2025-04-11T14:30:24","modified_gmt":"2025-04-11T14:30:24","slug":"as-trump-upends-global-trade-europe-sees-an-opportunity","status":"publish","type":"post","link":"https:\/\/www.insuracarelife.com\/blog\/as-trump-upends-global-trade-europe-sees-an-opportunity\/","title":{"rendered":"As Trump Upends Global Trade, Europe Sees an Opportunity"},"content":{"rendered":"<div data-testid=\"companionColumn-0\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">President Trump has big ambitions for the global trading system and is using tariffs to try to rip it down and rebuild it. But the European Union is taking action after action to make sure the continent is at the center of whatever world comes next.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">As one of the <a class=\"css-yywogo\" href=\"https:\/\/policy.trade.ec.europa.eu\/eu-trade-relationships-country-and-region\/eu-position-world-trade_en#:~:text=The%20EU%20benefits%20from%20being,at%20zero%20or%20reduced%20tariffs.\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">globe\u2019s biggest<\/a> and most open economies, the E.U. has a lot on the line as the rules of trade undergo a once-in-a-generation upheaval. Its companies <a class=\"css-yywogo\" href=\"https:\/\/ec.europa.eu\/eurostat\/statistics-explained\/index.php?title=USA-EU_-_international_trade_in_goods_statistics\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">benefit<\/a> from sending their cars, pharmaceuticals and machinery overseas. Its consumers benefit from American search engines and foreign fuels.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Those high stakes aren\u2019t lost on Europe.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Ursula von der Leyen, the president of the European Commission, the E.U.\u2019s executive arm, has spent the past several weeks on calls and in meetings with global leaders. She and her colleagues are wheeling and dealing to deepen existing trade agreements and strike new ones. They are discussing how they can reduce barriers between individual European countries.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">And they are talking tough on China, trying to make sure that it does not dump cheap metals and chemicals onto the European market as it loses access to American customers because of high Trump tariffs.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-1\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">It\u2019s an explicit strategy, meant to leave the economic superpower stronger and less dependent on an increasingly fickle America. As Ms. von der Leyen and her colleagues regularly point out, the U.S. consumer market is big \u2014 but not the be-all-end-all.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cThe U.S. makes up 13 percent of global goods trade,\u201d Maros Sefcovic, the E.U.\u2019s trade commissioner, said in a recent speech. The goal \u201cis to protect the remaining 87 percent and make sure that the global trade system prevails for the rest of us.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Success is far from guaranteed. America is still the world\u2019s biggest economy and a critical supplier of military technology and leadership for Europe. There is no real hope of replacing it in those roles overnight. Mr. Trump\u2019s pivot is unlikely to be painless.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">But not changing is not an option, as Ms. von der Leyen acknowledged in an interview with The Financial Times <a class=\"css-yywogo\" href=\"https:\/\/www.ft.com\/content\/fba18bd9-46f9-4736-89f3-976afe3abf7a?accessToken=zwAGMnu0DIrYkdP7oYvZRvlHNtOJ85dq_jq_eg.MEQCIBeYlr9iCvsza0fcsU3-staZDn6PIyaUYkmbvn3gVBybAiAWc_Y_M-4gnCpr3eHLXGlyR9vJ-VJJOW_n8_AT-RUH4A&amp;sharetype=gift&amp;token=a9bb877b-220d-4f22-8014-362f54d96c73\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">this week<\/a>.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cI mean, never waste a good crisis,\u201d she said.<\/p>\n<h2 class=\"css-13o6u42 eoo0vm40\" id=\"link-41bfb3f3\">Expanding the friend group.<\/h2>\n<p class=\"css-at9mc1 evys1bk0\">Europe has made it clear that it is eager to negotiate with the United States. Mr. Sefcovic has traveled to Washington repeatedly and plans to return to the United States on Monday. The goal is to work toward \u201cwin-win outcomes,\u201d Olof Gill, a spokesman for the European Commission, said on Friday.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-2\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">The bloc is dangling carrots like cutting tariffs on cars and other industrial products, and ramping up purchases of American liquefied natural gas. It is also threatening retaliation if negotiations fail.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">But striving for a deal is just Part 1 of the strategy. Part 2? Making new friends.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Europe has spent the time since Mr. Trump\u2019s re-election working to strike or improve trade ties with various partners. Officials have been in talks with <a class=\"css-yywogo\" href=\"https:\/\/policy.trade.ec.europa.eu\/eu-trade-relationships-country-and-region\/countries-and-regions\/mexico\/eu-mexico-agreement_en\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">Mexico<\/a>, <a class=\"css-yywogo\" href=\"https:\/\/ec.europa.eu\/commission\/presscorner\/detail\/en\/speech_25_641\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">India<\/a>, <a class=\"css-yywogo\" href=\"https:\/\/ec.europa.eu\/commission\/presscorner\/detail\/en\/ip_25_732\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">South Korea<\/a>, <a class=\"css-yywogo\" href=\"https:\/\/www.consilium.europa.eu\/en\/press\/press-releases\/2025\/03\/13\/south-africa-eu-summit-declaration\/\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">South Africa<\/a> and <a class=\"css-yywogo\" href=\"https:\/\/ec.europa.eu\/commission\/presscorner\/detail\/en\/ip_25_940\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">Central Asia<\/a>, to name a few. The E.U. announced just Thursday that it would begin <a class=\"css-yywogo\" href=\"https:\/\/ec.europa.eu\/commission\/presscorner\/detail\/en\/read_25_1043\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">free trade discussions<\/a> with the United Arab Emirates.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Ms. von der Leyen also spoke this week to Mark Carney, the new Canadian prime minister.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cShe reaffirmed the E.U.\u2019s strong commitment to open and predictable trade, and expressed her determination to work closely with Canada on reforming the global trading system,\u201d the bloc said in <a class=\"css-yywogo\" href=\"https:\/\/ec.europa.eu\/commission\/presscorner\/detail\/en\/read_25_1040\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">a statement<\/a>.<\/p>\n<h2 class=\"css-13o6u42 eoo0vm40\" id=\"link-4a2905ff\">Dealing with China.<\/h2>\n<p class=\"css-at9mc1 evys1bk0\">The E.U. and the U.S. agree that the existing trading system has failed to prevent China from subsidizing production, allowing it to dump inexpensive products into other markets in a way that puts domestic producers out of business.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">And Ms. von der Leyen has been clear that changes to the trade rules are now inevitable.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">She told The F.T. that when it came to the World Trade Organization \u2014 the beating heart of the rules-based order that Europe holds dear \u2014 the goal was to \u201cmodernise, reform and stabilise.\u201d<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-3\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Ms. von der Leyen has underscored that Europe will be on watch as the U.S. and China become further embroiled in an all-out trade battle. China on Friday said it was raising its tariffs on American goods to 125 percent from 84 percent, retaliating for the third time in the escalating trade war between the two superpowers.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">European officials are worried that Chinese companies will send their metals, chemicals and other products rushing toward the continent, with American customers out of reach. The E.U. has set up an \u201c<a class=\"css-yywogo\" href=\"https:\/\/ec.europa.eu\/commission\/presscorner\/detail\/es\/statement_25_996\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">import surveillance task force<\/a>\u201d to make sure it can detect \u2014 and respond to \u2014 potential dumping.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-4\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">When Ms. von der Leyen spoke to the Chinese premier earlier this week, she urged Beijing to negotiate with the United States and emphasized that China needs to work on longer-term structural solutions to rebalance its trading relationships, <a class=\"css-yywogo\" href=\"https:\/\/www.eeas.europa.eu\/delegations\/china\/read-out-phone-call-between-european-commission-president-von-der-leyen-and-chinese-premier-li-qiang_en\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">the E.U. said<\/a>.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Some European leaders \u2014 including Prime Minister Pedro S\u00e1nchez of Spain \u2014 have even been pushing <a class=\"css-yywogo\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2025-04-11\/spanish-premier-begins-outreach-to-china-calls-it-partner-of-eu?embedded-checkout=true&amp;sref=zVYYYI5e\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">to enhance<\/a> China and E.U. relations in a world of upheaval. Experts have said it is equally, if not more likely, that trade tensions between the two will intensify under all of the pressure.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-5\">\n<div class=\"css-53u6y8\">\n<h2 class=\"css-13o6u42 eoo0vm40\" id=\"link-37ede4ed\">But will it work?<\/h2>\n<p class=\"css-at9mc1 evys1bk0\">Still, Europe&#8217;s basic strategy is clear: It\u2019s pushing for a deal with the U.S., but it\u2019s also recognizing that the world is on the cusp of change and hoping to ride that shift to success.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">One question is whether all of its new alliances will trigger Mr. Trump. The American president has already vented on social media about Europe\u2019s deal-making.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cIf the European Union works with Canada in order to do economic harm to the USA, large scale Tariffs, far larger than currently planned, will be placed on them both,\u201d he wrote on Truth Social in late March.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">So far, that threat seems to have done little to deter conversations.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">There is always the reality that Europe relies on American cooperation for more than just trade, though. Even if it can replace American customers and raw materials with other markets, U.S. military support is still critical in both the war in Ukraine and for the North Atlantic Treaty Organization.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">But for now, the E.U. seems to accept that the rules are about to be rewritten. Given that, its leaders seem to be doing what they can to make sure that when it happens, they are holding the pen.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n","protected":false},"excerpt":{"rendered":"<p>President Trump has big ambitions for the global trading system and is using tariffs to try to rip it down and rebuild it. But the European Union is taking action after action to make sure the continent is at the center of whatever world comes next. As one of the globe\u2019s biggest and most open [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1129,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[365,753,502,817,246,158,816],"class_list":["post-1128","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-europe","tag-global","tag-opportunity","tag-sees","tag-trade","tag-trump","tag-upends"],"_links":{"self":[{"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/posts\/1128","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/comments?post=1128"}],"version-history":[{"count":0,"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/posts\/1128\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/media\/1129"}],"wp:attachment":[{"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/media?parent=1128"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/categories?post=1128"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/tags?post=1128"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}