European business leaders criticize U.S. protectionism under Trump administration

European business leaders, including Airbus CEO Guillaume Faury, have expressed concerns about the rise in U.S. protectionist policies during the administration of former President Donald Trump. Speaking at a recent international trade forum in Brussels, Faury and other executives highlighted the impact of these measures on global trade and transatlantic business relations.

Faury described the U.S. protectionist approach as a "significant disruption" to the global aviation and manufacturing sectors. He pointed to tariffs imposed during the Trump era on European goods, including aerospace products, as detrimental to both American and European industries. "Trade wars do not have winners," Faury stated. "They create inefficiencies and increase costs for consumers on both sides of the Atlantic."

The Trump administration's tariffs on Airbus planes, in response to a long-standing dispute over subsidies between Airbus and its American rival Boeing, were a particular sore point. The World Trade Organization (WTO) authorized the U.S. to impose tariffs on $7.5 billion of European goods in 2019, followed by European countermeasures against American exports.

Broader business frustrations

Faury’s sentiments were echoed by other European executives. Representatives from major industries, including automotive, pharmaceuticals, and consumer goods, criticized the "America First" policies that characterized Trump's presidency.

Bertrand Camus, CEO of French multinational Veolia, remarked, "The unilateral actions taken by the Trump administration created unnecessary friction in sectors that rely on global cooperation and supply chains."

German automobile executives also voiced their displeasure over the repeated threats to impose tariffs on European cars. "Protectionism disrupts trust and predictability in international trade, which is essential for industries like ours," said Ola Källenius, CEO of Daimler AG.

Analysts warn that the protectionist measures of the Trump era could have lingering effects on EU-U.S. relations. Some European officials have even suggested that the Biden administration, while more collaborative, has not fully reversed the trend of prioritizing domestic industries at the expense of global trade norms.

EU Trade Commissioner Valdis Dombrovskis stated, "While the current administration has worked to mend ties, the scars of protectionism remain. Europe must focus on strengthening its own strategic industries while keeping doors open for fair trade."

Looking ahead

Despite these criticisms, European business leaders called for renewed dialogue and cooperation with the U.S. to address trade imbalances and other issues. Many emphasized the importance of working together on shared challenges, such as climate change and supply chain resilience.

Faury concluded his remarks with cautious optimism: "The global economy thrives on partnership, not isolation. It is in the interest of both Europe and the United States to move past protectionism and build a future of mutual prosperity."

As discussions on trade policies continue under President Biden, European businesses remain hopeful for a more collaborative transatlantic relationship. However, they also appear determined to lessen their dependency on the U.S., aiming for a more balanced and resilient global trade system.

FAQs about Airbus CEO’s remarks on U.S. protectionism and industry outlook

1.  Why is Airbus concerned about U.S. protectionism under Donald Trump?

Airbus CEO Guillaume Faury expressed concern that the incoming Trump administration’s "America First" policies could lead to stronger protectionism in the U.S. This could result in increased tariffs, trade barriers, and challenges for European aerospace companies, including Airbus, which rely heavily on the U.S. market for sales and operations.

2. How might U.S. protectionism impact European aerospace companies?

Protectionist policies in the U.S. could make it more difficult for European aerospace companies to access the American market. This could lead to higher production costs, reduced sales, and potential disruptions in supply chains, as companies face stricter regulations, tariffs, or export restrictions.

3. What impact has the COVID-19 pandemic had on Airbus’ operations?

The COVID-19 pandemic has significantly disrupted global supply chains, and Airbus continues to face challenges in securing the necessary components and labor to meet production targets. These disruptions have slowed the recovery process, affecting delivery timelines and overall industry performance.

4. How many aircraft did Airbus deliver in 2024?

Airbus is expected to announce a total of 766 aircraft deliveries for 2024, representing a 4% increase compared to the previous year. Despite challenges, the company managed to achieve modest growth in deliveries.

5. Has Airbus experienced a slowdown in orders for 2024?

Yes, while Airbus has seen an increase in deliveries, it has also experienced a slowdown in new orders compared to the record-high levels seen in 2023. The market has shown signs of slowing demand, which may affect future growth prospects for the company.

6. What are the biggest challenges facing Airbus in the near future?

Airbus faces a combination of challenges, including potential protectionist policies in the U.S., ongoing supply chain disruptions caused by the pandemic, and changing market conditions. The company will need to adapt to these challenges to maintain its competitive edge in the global aerospace market.

7. What are the key takeaways from Guillaume Faury’s comments on the aerospace industry?

Faury highlighted that the aerospace sector is dealing with both external challenges, such as rising protectionism and supply chain issues, and internal pressures, including slower-than-expected recovery from the pandemic. Despite these obstacles, Airbus remains focused on achieving modest growth and adapting to the evolving global market.