Europe fears shift in domestic politics, security situation if Trump returns to office

TEST TO TRADE TIES

The EU is also worried that trade ties with the US – worth more than US$1 trillion in goods and services annually and the most valuable in the world – could be put to the test.

Trump has threatened to impose duties of up to 20 per cent on all goods imported to the US, which would apply to the EU as well. 

Sectors such as machinery, vehicles and chemicals – which together made up 68 per cent of EU exports to the US last year – would be hardest hit.

However, it would not be the first time Europe’s businesses have borne the brunt of such moves by Washington. 

In 2018, Trump, who was serving his first term in office, imposed tariffs on European steel and aluminium. A duties truce overturning this was struck by the Biden administration but that arrangement will expire in March next year.

As the nature of its relationship with the US hangs in the balance, the EU has set up a rapid reaction force to deal with the outcome of the election.