European stocks have hit record highs this month, as companies have beat fourth-quarter revenue expectations, but the topic that dominates the conversation among executives in the region is U.S. tariffs.

The trade threats could reduce exports to the United States and dampen investment in Europe, dealing a blow to growth at a time when the continent is already facing a lackluster economy.

A top European Union official, who is trying to head off a potential trade conflict, stressed the importance of active engagement and fairness in trade during a four-hour meeting with Trump administration officials on Wednesday.