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.

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.

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.