US-EU trade and economic relationship in the age of global rivalry

Abstract

The erosion of the U.S.-centric global order, heightened confrontation with Russia, and escalating rivalry with China are propelling the United States and the EU towards more intensive cooperation in economic and technological sectors. Coordinating sanctions and other punitive measures against 'revisionist powers' has become a key area of interaction between Washington and Brussels. Remarkably, the US-EU trade and economic relationship has advanced during the Biden presidency, contrasting sharply with the tariff and trade wars of the Trump era. Following a brief decline during the pandemic, US-EU bilateral trade has resumed growing at a rapid pace. Efforts by Washington and Brussels to address challenges posed by emerging technologies coincide with their individual pursuits of unilateral advantages in the race for technological supremacy and a transition to a green economy. While the transatlantic partners are striving for cooperation, this does not preclude potential clashes in their trade and economic interests, especially where there are foundational reasons for intense competition.