Media: EU industry chief unveils "Europe First" strategy to combat trade wars

The European Union's new industry chief, Stéphane Séjourné, has outlined a "Europe First" strategy to secure the bloc's economic future amid growing global trade tensions.

Séjourné emphasized the need for this approach to safeguard key sectors from potential harm in a trade war, particularly one provoked by former US President Donald Trump’s protectionist agenda, Caliber.Az reports via Financial Times.

Séjourné, a close ally of French President Emmanuel Macron and a former foreign minister, stressed that Europe must take an "offensive" stance to protect its strategic industries, such as steel, automotive manufacturing, and aerospace.

This follows his concerns that the EU could be collateral damage in a global trade conflict, especially if the United States were to impose broad tariffs or tear up trade agreements.

His comments come at a critical juncture, with the EU under mounting pressure to respond to the rise of protectionist policies in both the US and China.

“When China says ‘Made in China’ or the US says ‘America First,’ we must say: ‘Made in Europe’ or ‘Europe First,’” Séjourné noted.

He warned that Europe could be overwhelmed by a flood of subsidized imports from China, undermining the competitiveness of local industries.

The new Commission, which began its mandate on December 1, aims to boost the EU's industrial strength and enhance its strategic autonomy over the next five years. However, this ambitious goal faces significant hurdles, not least the challenges posed by a potential US trade war.

Séjourné’s primary fear is that Europe could become a "collateral victim" of this conflict, which would exacerbate economic difficulties.

To mitigate this, the EU is expected to prioritize critical sectors, including clean technologies, and create a more cohesive economic doctrine. Séjourné also noted the importance of safeguarding "historic" industries, such as steel, which are vital to the green transition—steel being a key component in producing wind turbines and electric vehicles.

This renewed focus on industrial policy comes on the back of the EU’s recent setbacks, including the collapse of Northvolt, a green-tech battery manufacturer hailed as a flagship of Europe’s clean energy future. The bankruptcy, which resulted in substantial losses for investors like Goldman Sachs and the EU itself, has raised concerns about the viability of the continent's industrial ambitions.

Séjourné, however, sought to reassure the public and investors that the EU remains committed to the battery sector. He stated, “Europe will not abandon the battery industry,” adding that despite the technological challenges, the EU would continue to support these critical sectors.

He expressed hope that by strategically focusing on these areas, Europe could not only overcome current setbacks but also pave the way for long-term economic growth and job creation.

The EU’s industrial strategy is entering a pivotal phase, and Séjourné's vision of a "Europe First" approach will be central to shaping the bloc's response to the growing global economic uncertainty.

By Aghakazim Guliyev