The White House will once again be the residence of Donald Trump next January. This return of the Republican candidate for the presidency of the United States risks having concrete consequences for the Belgian and European economy. Trump plans in particular to increase customs duties on products imported into the United States, and his return to power could encourage American investments to the detriment of Europe.
The United States, Belgium’s fourth customer, imported more than 25 billion euros worth of Belgian products last year, including metals. However, Trump wants to impose an additional import tax. For example, if the customs duty on the American market reaches 10%, this will immediately make the Belgian product 10% more expensive compared to products manufactured locally in the United States, not subject to this tax. This difference could directly impact employment in Belgian companies with strong exposure to the American market.
Business competitiveness under threat
Other elements of Trump’s policy also threaten the competitiveness of Belgian companies. His desire to favor fossil fuels, reduce income and corporate taxes, as well as strengthen favorable conditions for production in the United States are all encouraging factors. If manufacturing becomes more attractive in the United States, with a more flexible labor market, reduced energy costs and increased subsidies, companies engaged in global markets could choose to locate their production sites across the Atlantic, to the detriment of Europe. This strategic choice could once again put jobs in Belgium at risk.
The question therefore remains to know what European response will be provided. The Walloon Act business federation calls for increased cooperation between European states to support innovation and strengthen the continent’s competitiveness.
Trump European economy US election 2024
Belgium
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