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

Listen: Elon Musk, the world’s richest man, made his fortune-breaking industries—space, cars, social media—and is now trying to break the government… in the name of fixing it. But what happens when Silicon Valley’s ‘move fast and break things’ ethos collides with the machinery of federal bureaucracy? On the GZERO World Podcast, Ian Bremmer sits down with WIRED Global Editorial Director Katie Drummond to unpack the implications of Musk’s deepening role in the Trump administration and what’s really behind his push into politics.

France's President Emmanuel Macron speaks during a press conference following a summit for the "coalition of the willing" at the Elysee Palace in Paris on March 27, 2025.

LUDOVIC MARIN/Pool via REUTERS

At the third summit of the so-called “coalition of the willing” for Ukraine on Thursday, French President Emmanuel Macron proposed a multinational “reassurance force” to deter Russian aggression once a ceasefire is in place – and to engage if attacked.

A group demonstrators chant slogans together as they hold posters during the protest. The ongoing protests were sparked by the arrest of Istanbul Metropolitan Mayor Ekrem Imamoglu.
Sopa Images via Reuters

Last week’s arrest of Istanbul Mayor Ekrem Imamoglu sparked the largest anti-government rallies in a decade and resulted in widespread arrests throughout Turkey. Nearly 1,900 people have been detained since the protests erupted eight days ago.

National Security Advisor Mike Waltz and Rep. Elise Stefanik (R-NY), the then-nominee for US ambassador to the UN, during a Cabinet meeting at the White House in Washington, DC, on Wednesday, Feb. 26, 2025.
Al Drago/Pool/Sipa USA

An internal GOP poll found a Republican candidate trailing in a special election for a conservative-leaning district in Florida, forcing US President Donald Trump to make a decision aimed at maintaining the Republican Party’s majority in the House.

South Sudan's Vice President Riek Machar, pictured here addressing the press in 2020.

REUTERS/Samir Bol

Alarm bells are ringing ever more loudly in South Sudan, as Vice President Riek Machar — chief rival to Prime Minister Salva Kiir — was arrested late Wednesday in an operation involving 20 armored vehicles at his compound in Juba. He was placed under house arrest, a move that is fueling fears that the country will soon descend into civil war.

Afghan Interior Minister Sirajuddin Haqqani, pictured here at the anniversary event of the departure of the Soviet Union from Afghanistan, in Kabul, Afghanistan, on April 28, 2022.

REUTERS/Ali Khara

The Trump administration has dropped multimillion-dollar bounties on senior Afghan officials from the Haqqani network, a militant faction that carried out some of the deadliest attacks on American troops but has now positioned itself as a moderate wing within the Taliban government. But why?

The Canadian flag flies on Parliament Hill in Ottawa.

REUTERS/Blair Gable

Canada’s foreign interference watchdog is warning that China, India, and Russia plan on meddling in the country’s federal election. The contest, which launched last weekend, has already been marked by a handful of stories about past covert foreign interventions and threats of new ones.