In a conversation with UnHerd’s Freddie Sayers, our co-founder Yanis Varoufakis and Eurointelligence founder Wolfgang Münchau dissect the intensifying trade conflict between the United States and Europe.

With US president Donald Trump spearheading a new wave of protectionist policies – underscored by fresh tariff threats and bilateral deals with the UK and India – the global economic landscape is tilting once more toward fragmentation.

Varoufakis warns that Europe is unprepared for the scale of what’s coming. Unlike the US and China, the EU lacks the political cohesion and fiscal tools to respond decisively. Münchau echoes this, highlighting the absence of a coherent European trade strategy, which leaves the bloc vulnerable to US economic aggression and global marginalisation.

The discussion reveals more than economic friction – it exposes a deeper geopolitical realignment. As traditional alliances fracture and multilateralism wanes, Europe finds itself trapped between an inward-looking America and an assertive China. Without bold, unified action, the EU risks becoming economically sidelined and politically irrelevant.

Europe must reclaim its sovereignty not through nationalism, but through a democratic, green, and just economic agenda. The future of Europe, and its role in the world, hangs in the balance.

Watch the full conversation below

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