Europe should prepare for Trump II – Commerzbank

Source Fxstreet

Donald Trump has at least a good chance of a second term in office. Forward-looking politics should prepare for this, strategists at Commerzbank report.

It cannot be said that there would be a U-turn in US policy under Trump

Under President Trump, the Americans are unlikely to continue to support Ukraine to the current extent. The Europeans will therefore have to shoulder a greater burden. This also applies to defense spending as a whole. The US position here is likely to be that it is primarily the responsibility of the European NATO members to invest sufficiently in protection against Russia. The pressure to raise defense budgets will continue to increase. So far, many countries have struggled to even reach NATO's 2% target.

Donald Trump's preference for a robust foreign trade policy based on tariffs, among other things, could lead to a resurgence of trade disputes between the US and the EU.

However, it cannot be said that there would be a U-turn in US policy under Trump. Rather, he would probably only accelerate trends that are already in place; a certain move away from Europe and an increased US focus on the Asian region is to be expected with any future administration. The same applies to the push for more protectionism. This enjoys broad bipartisan support. However, President Trump would probably ensure that Europeans can no longer turn a blind eye to these developments.

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
US Dollar Index steadies above 99.00 ahead of Retail Sales, PPI dataThe US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is inching lower after registering modest gains in the previous session. The DXY hovers around 99.10 during the Asian hours on Wednesday.
Author  FXStreet
12 hours ago
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is inching lower after registering modest gains in the previous session. The DXY hovers around 99.10 during the Asian hours on Wednesday.
placeholder
Bitcoin Eyes $92K Breakout as Stocks Reach Fresh Records on Soft US CPI DataBitcoin nears $93,000 as lower-than-expected US inflation data supports a surge in risk assets.
Author  Mitrade
20 hours ago
Bitcoin nears $93,000 as lower-than-expected US inflation data supports a surge in risk assets.
placeholder
Gold Price Forectast: XAU/USD rises above $4,600 on US rate cut expectations, Fed uncertainty Gold price (XAU/USD) rises to around $4,600 during the early Asian session on Wednesday. The precious metal gains momentum as traders firm up bets on US interest rate cuts after the release of inflation data.
Author  FXStreet
21 hours ago
Gold price (XAU/USD) rises to around $4,600 during the early Asian session on Wednesday. The precious metal gains momentum as traders firm up bets on US interest rate cuts after the release of inflation data.
placeholder
Bank Stocks Lead US Equities in 2026; Wall Street Warns Guidance Matters More Than Earnings.Bank stocks will release fourth-quarter earnings this week, kicking off the 2026 U.S. earnings season.Tuesday will see JPMorgan Chase (JPM) reporting earnings, while Citigroup (C) , Wells
Author  TradingKey
Yesterday 10: 15
Bank stocks will release fourth-quarter earnings this week, kicking off the 2026 U.S. earnings season.Tuesday will see JPMorgan Chase (JPM) reporting earnings, while Citigroup (C) , Wells
placeholder
Bitwise Slams 401(k) Bitcoin Ban as ‘Ridiculous’ Amid Warren’s Pressure on SECU.S. President Donald Trump's executive order has paved the way for cryptocurrencies to be included in 401(k) retirement plans, igniting debate on their volatility.
Author  Mitrade
Yesterday 08: 34
U.S. President Donald Trump's executive order has paved the way for cryptocurrencies to be included in 401(k) retirement plans, igniting debate on their volatility.
goTop
quote