European leaders tread carefully as Trump holds back trade measures in his first policy moves

Donald Trump promised to impose tariffs and taxes on foreign countries, including European nations. However, he did not mention any trade measures at his inauguration. Several EU leaders moved to offer their best wishes but carefully avoided mentioning his first policy announcements.

The American President was sworn in yesterday and announced measures to deport undocumented migrants, ramp up the oil and gas supply, and expand American territory. However, he held back on the subject of tariffs.

European heads respond to Trump’s first hours in office

New United States President, renewed transatlantic alliance.

My very best wishes to the American people on the start of a new chapter.

Europe stands ready to work together as friends and partners, to shape a world of stability, opportunity and hope.@realDonaldTrump 🇪🇺🇺🇸 pic.twitter.com/4Io5ouL7hK

— Roberta Metsola (@EP_President) January 20, 2025

Trump entered office with a slate of domestic policy initiatives and pledged a “golden age of America.” The president vowed to “tariff and tax foreign countries” but failed to mention concrete trade measures. 

During his speech, Trump highlighted the importance of overhauling the U.S. trade system to protect American workers and families. He also said that instead of taxing Americans to enrich other countries, he “will tariff and tax foreign countries” to enrich U.S. citizens.

The president had told reporters that the EU imposes a 20% value-added tax, which is almost equivalent to applying a tariff.

Trump’s delayed announcement of trade measures has elicited a collective sigh of relief and placid reactions around Europe. Leaders across Europe congratulated Trump with messages posted on social media, but they carefully avoided any reference to his first policy announcements.

European Commission president Ursula von der Leyen said that the EU looks forward to working closely with the president to tackle global challenges. 

Kaja Kallas, Vice-President of the European Commission, congratulated Trump and said she was looking forward to continuing their partnership.

Comments on Kallas’ post implied that she was leading the charge to secure a spot on the good list. Some argued that the congratulatory messages were just self-preservation tactics and that Europe is on a tour to “kiss the ring to void getting slapped by the hand.”

“Trump’s inauguration must be met with our clear determination: to defend global democracy, to fight climate change, and to stand with Ukraine as long as it takes. Now more than ever, the European Union must act united.”

–Terry Reintke, co-leader of the Green party in the European parliament.

Other EU leaders congratulated the president while glossing over any differences. German Chancellor Olaf Scholz congratulated Trump and said that the U.S. is its closest ally, and the aim of the EU’s policy has always been a good transatlantic relationship. 

One EU official also said that there is still hope to stabilize things with Trump, even though the European countries will pay back through trade.

The U.S. leaves the Paris Climate Accord

Although Trump’s first initiatives as president did not directly hit the EU, the White House revealed the U.S. is leaving the Paris Climate Accord. The EU was championing the Paris Climate Accord for global efforts to fight climate change.

Trump also withdrew the U.S. from the Paris Agreement during his first term in office in 2017. Former President Joe Biden promptly reversed the move on his first day in office in 2021. The White House has revealed a “national energy emergency” that highlighted changes that will reverse U.S. climate regulations and boost oil and gas production.

Although the Paris Agreement is not a legally binding treaty, the document drives global cooperation to mitigate the causes of global warming. The U.S. move from the Paris Agreement came as global temperatures in 2024 rose more than 1.5o C  above pre-industrial levels for the first time in a calendar year. The Paris Agreement established that the temperature records reached a level beyond which the world would face extremely dangerous impacts.

Trump signed the order to withdraw from the Paris Climate Accord on Monday evening, including a letter to the United Nations explaining the decision.

Following his inauguration, the American president called the Paris Agreement a “ripoff” during a speech at the Capital One Arena in Washington, DC. Trump also acknowledged that the U.S. will embark on a new age of oil and gas exploration. He vowed to bring oil and gas prices down, fill strategic reserves to the top, and export American energy worldwide.