Crucial for Dutch companies to maintain good relations with U.S. under Trump: VNO-NCW

For Dutch companies, it is of great importance that the Netherlands can continue and expand the good relations with the United States under the new American government, the business organization VNO-NCW said after the first results of the American presidential elections were announced.

“The American population seems to have once again elected Donald Trump as president, but we will wait for the final result,” VNO-NCW, the lobby group for Dutch businesses, wrote in a statement, which mainly focused on the strong ties between the Netherlands and the U.S. “The U.S. is our country’s most important non-European trading partner and the largest investor in our economy. Conversely, the U.S. is the largest recipient of Dutch capital.”

According to the business organization, it is important that this good relationship continues. At the same time, the VNO-NCW believes that Europe needs to work on strengthening its own position. “Regardless of who sits in the White House, the EU will need to take additional steps to strengthen the competitiveness of the European economy and we will need to invest more in our own defense and economic resilience in Europe.”

In the run-up to the United States election, Rabobank and ING both calculated that Trump’s presidency would be a blow to the Dutch economy. If he imposes the import tariffs he promised in his campaign, inflation will climb and economic growth will slow in the Netherlands, according to the banks. Rabobank also stressed the importance of not letting higher U.S. import tariffs turn into a trade war.

Tariffs on exports from the European Union will reduce the sale of EU goods. Multiple Dutch companies are already bracing for this. Dutch lighting company Signify, for example, is looking at focusing its products more on non-U.S. markets.

Dutch politicians have mainly been concerned about Trump’s consequences for security in Europe. Trump has threatened to leave NATO multiple times and also said the U.S. would only provide support for allies who contribute enough financially. In February, then-Defense Minister Kajsa Ollongren warned that if Trump follows through on that threat, the Netherlands' contribution to NATO could double.

This has led to a significant increase in support among Dutch people for the European Union to maintain its own army. On Wednesday morning, as Prime Minister Dick Schoof and PVV leader Geert Wilders congratulated Trump on his projected victory, CDA defense specialist Derk Boswijk warned that Europe must quickly ensure its own security. The Netherlands and Europe can no longer count on the U.S. dedication to NATO and aid to Ukraine. “We know what we have to do,” Boswijk said, adding that there is “no time to lose” in donating frozen Russian assets to Ukraine.