US protectionism could trigger "war of subsidies" with Europe

Will Europe Respond to US Protectionism With a "War of Subsidies"? | Europe In :60 | GZERO Media

Carl Bildt reporting from the 2023 World Economic Forum in Davos, Switzerland.

What's happening in Davos from the European point of view?

I think there are two issues that are discussed quite broadly.

The one is what's going to be the European response, their response, to what's happening in the US with these massive subsidies and slight protectionist tendencies of evolving industrial policy? Is there going to be a European response of the same sort? There's a danger there, in my opinion, of a war of subsidies across the Atlantic that is going to be to the detriment of both the US and the European economies over time. But that's the big issue.

The second issue is, of course, whether it will be possible to fundamentally step-up military support for Ukraine. The issue of delivering of tanks is very much in the forefront of the public debate, be that in Germany or elsewhere. But it's also obvious that they need more effective air defense systems, and they need better financial support in order to sustain the functionability of the Ukrainian state during the very difficult year that lies ahead.

More from GZERO Media

U.S. President Donald Trump meets with Italian Prime Minister Giorgia Meloni in the Cabinet Room at the White House in Washington, D.C., U.S., April 17, 2025.

REUTERS/Evelyn Hockstein

A federal judge set up a showdown with the Trump administration on Wednesday with a ruling that threatens to find the government in contempt if it fails to comply with a judicial order to provide due process to Venezuelans deported to a prison in El Salvador.

Gavin Newsom speaks at the Vogue World: Hollywood Announcement at the Chateau Marmont in West Hollywood, CA on March 26, 2025.
Photo by Corine Solberg/Sipa USA

California governor Gavin Newsom kicked off a campaign to promote Canadian tourism in his state, pitching its sunny beaches, lush vineyards, and world-class restaurants.

An employee checks filled capsules inside a Cadila Pharmaceutical company manufacturing unit at Dholka town on the outskirts of Ahmedabad, India, April 12, 2025.
REUTERS/Amit Dave

Donald Trump’s administration announced that it is opening investigations into pharmaceutical and semiconductor supply chains, which will likely result in tariffs that will hurt suppliers in Europe, India, and Canada.

Anderson Clayton, chair of the North Carolina Democratic Party speaks after Democrat Josh Stein won the North Carolina governor's race, in Raleigh, North Carolina, U.S., November 5, 2024.
REUTERS/Jonathan Drake

As the Democrats start plotting their fight back into power in the 2026 midterms, one issue has come up again and again.

People gather after Friday prayers during a protest in solidarity with Palestinians in Gaza, in Amman, Jordan, on April 4, 2025.
REUTERS/Jehad Shelbak

Jordanian authorities announced on Wednesday the arrest of 16 people accused of planning terrorist attacks inside Jordan. The country’s security services say the suspects had been under surveillance since 2021, and half a dozen of them were reportedly members of the Muslim Brotherhood, a transnational Islamist organization.