There are European vendors like ericcson. This is about being cheap.
Europe needs to gain in tech and this is one easy way to do it, by supporting their own players, their own ecosystem. And it's a self-interest freebie at that: the US and EU interests are mostly aligned, there will be no push-back for supporting Ericsson & Co. The US would rather everyone use Ericcson than Huawei.
[1] https://www.theverge.com/2020/1/29/21113289/european-union-e...
So, is it worth it to sacrifice VW and BMW in order to help Nokia and Ericsson?
Sure, but are you saying the tradeoff is worth it? It's fairly simple: if Europe begins taking protectionist measures that harm Chinese companies, then China will respond in kind.