America's Retreat Spells a Big Opportunity for Europe

Europe needs to stay united, implement regulatory reforms and open up further to immigration

- PINELOPI KOUJIANOU GOLDBERG

The US is at a turning point. For reasons that future historians will debate—and that will leave many dumbfounded—the country is attacking the very foundations of its strength: its openness, its institutions, and its global engagement. The shift began with US President Donald Trump's tariffs. Their chaotic and inconsistent deployment in pursuit of ill-defined objectives has not only raised the cost of imports and disrupted global trade, but also undermined America's credibility as a reliable economic partner, prompting questions about the US dollar's future as the world's reserve currency.

Then came the Trump administration's attacks on American universities, long a cornerstone of the country's scientific and technological leadership. Drastic cuts to research funding, higher taxes on endowments, and restrictive visa policies are weakening their ability to attract and retain top global talent. The result is a loss not just for academia, but for US innovation and thus the broader economy.

Meanwhile, the country's most dynamic sector, technology, has come under political and regulatory pressure. Apple, Alphabet, and Meta face intensifying scrutiny at home while their competitors abroad benefit from supportive industrial policies. As most countries position themselves to compete in the 21st-century economy, the US has adopted a policy that reflects the past (reviving domestic manufacturing, relaxing child labor protections, etc.).