Issue Managing reliance on the United States amid broad tariff uncertainty

Summary

The second Trump administration has used tariffs broadly as a policy tool without clearly distinguishing allies from competitors. Key European export industries have been directly affected as a result. Country-specific and product-specific duties, repeated adjustments and changes in their legal basis have left European manufacturers and policymakers facing persistent uncertainty over transatlantic economic relations. The report pairs US tariff policy with China's industrial and supply-chain risks as the two forces widening uncertainty in the EU's external economy. It frames the EU's task as maintaining the alliance and economic relationship with Washington while managing the risks that come from excessive dependence on US markets and policy.