Europe Fears 'Honeymoon Is Over' As Biden Continues Trump's 'Protectionist' Trade Policies

The United States’ trade policies under President Joe Biden have left European officials feeling apprehensive as they see a continuation of the protectionist stance adopted by his predecessor, Donald Trump.

What Happened: The Wall Street Journal reported on Monday that despite Biden’s “America is back” declaration, his administration has maintained many of Trump’s protectionist policies. This includes keeping trade barriers in place, excluding European companies from U.S. manufacturing subsidies, and imposing stricter restrictions on Chinese access to American technology.

European diplomats are concerned that the U.S.’s economic policies, regardless of the election outcome, are no longer in their favor. This has led to doubts about the U.S.’s commitment to the rules-based trading system and the potential for economic conflict between the long-standing allies.

.”The honeymoon is over," one European diplomat said.

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The European Union has taken steps to support its domestic industries, relaxing some subsidy rules to compete with U.S. clean-technology incentives. However, EU officials are hesitant to fully embrace the U.S. approach, which they say mirrors tactics favored by Beijing.

Despite these concerns, the EU has been cautious in pushing back against the U.S., given the current global challenges posed by Russia and China.

Why It Matters: The EU’s concerns about the U.S.’s trade policies are not unfounded. In a recent move, the EU cracked down on tech giants like Apple Inc., Alphabet Inc., and Qualcomm Inc., signaling a shift in its regulatory approach.

However, the EU and the U.S. have also shown signs of cooperation, as seen in the extension of their tariff truce related to the steel and aluminum dispute. This extension, which will last until Mar. 31, 2025, is expected to save EU steel and aluminum exporters approximately €1.5 billion annually.

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