As President Donald Trump takes office, a new survey of American companies in Europe finds that nine in ten anticipate a worsened EU-US trade and investment relationship. Respondents also have a pessimistic outlook on anticipated policy changes, with two-thirds expecting US policies to have a negative impact on their operations in Europe in the coming years. This concern applies to policies on both sides of the Atlantic. When asked the same question about announced EU policies, a majority (52%) also predicted a negative impact. However, 28% expected EU policies to have a ‘somewhat’ or ‘very’ positive influence on their European operations.

Amid talk of tariffs, trade facilitation topped the list of areas where transatlantic collaboration will be critical for business success, with 84% ranking trade policy and tariffs in their top three priorities, closely followed by progress on developing resilient supply chains. To reinforce their shared economic leadership globally, respondents recommended that EU and US policymakers focus their attention on minimising regulatory burdens, reducing trade barriers and strengthening regulatory convergence. 

Despite the pessimistic business outlook, the survey, conducted 6-14 January, shows that American companies still see Europe as a critical part of their global operations. All respondents described Europe as important to some degree, with 75% labelling the region as ‘extremely’ or ‘very’ important to their company’s global operations. Companies also confirmed their continued support for the Paris Agreement and Ukraine’s future economic prosperity and reconstruction. 

‘American companies remain committed to Europe and its success – even with testing times on the horizon. A strong transatlantic relationship benefits the EU, the US and the world. But the relationship only works when Europe’s economy is strong enough to attract investment and support its ability to exercise global leadership’, Malte Lohan, CEO, AmCham EU said in response to the survey. 

‘The focus on trade is unsurprising. Trade barriers are rising around the world despite open trade’s contribution to economic growth and resilience. At AmCham EU, we call out protectionism whenever we see it. That will not change with the new political administrations on both sides of the Atlantic’, Mr Lohan added.

To view the survey results, click here.