Catalina Espinosa
Research expert covering society, economy, and politics for Europe and the EU
EU-U.S. Relations - Statistics & Facts
Since Donald Trump's re-election as U.S. president, the future of EU-U.S. relations has become a central concern for both European leaders and citizens alike, due to the United States' foreign and economic policies and their potential impact on the global economy. The threat of imposing tariffs, combined with the shifting stance on the War in Ukraine, has strained the historically strong transatlantic ties, creating uncertainty about the impact of these measures on the European economy and security.
From a defense perspective, the U.S. has also been a key strategic ally and a major security guarantor for Europe, primarily through the NATO military alliance. Founded in 1949 as a direct response to the Cold War, NATO has been a cornerstone of Western European security. However, this aspect of transatlantic relations has been undermined by recent shifts in U.S. foreign policy priorities and Russia's military expansion.
Economically, the U.S. government initially imposed a 25 percent tariff on automobile import's, alongside with the 20 percent tariff on all foreign goods—measures expected to significantly impact the European economy. Countries like Germany, Slovakia, and Spain - major car manufacturers in Europe —could be hit particularly hard, given their reliance on the automotive industry for economic growth.In retaliation, the EU imposed counter-tariffs worth 26 billion euros on U.S. goods, escalating the situation into a trade war and signaling a break from the traditionally cooperative transatlantic relationship. However, following Trump’s April 9 announcement to pause the universal tariffs affecting the EU, the bloc responded with a 90-day suspension of its countermeasures.
In July, the President of the United States announced 30 percent tariffs on EU imports, set to take effect in August. Rather than responding with immediate countermeasures, the EU opted for a diplomatic approach, paving the way for negotiations that ultimately led to a recently signed trade agreement with the U.S. government.
The new agreement imposes a 15 percent tariffs on all the EU goods. While experts argue that the new agreement will still impact the future of the European economy, most agree that Brussels was not totally defeated, as the agreement marks an important climbdown from the initial 30 percent threat. Other aspects of the agreement include the EU's purchase of 750 billion dollars worth of oil from the U.S. and zero tariffs on aviation products. The auto industry remains the biggest concern among EU members, given the new baseline 15 percent tariff.
The historical transatlantic coalition
Since the Second World War, the relationship between Western Europe and the U.S. has been defined by economic cooperation and strategic alliance. In terms of trade, the U.S. has been one of the EU's largest trade partners, recently as the second largest exporter to the EU and the largest single importer of EU goods. While this trade relationship has remained relatively stable, even during the first Trump term, these new tariffs are creating disputes between the EU and U.S., and may cause European economies to strengthen ties with other emerging markets.From a defense perspective, the U.S. has also been a key strategic ally and a major security guarantor for Europe, primarily through the NATO military alliance. Founded in 1949 as a direct response to the Cold War, NATO has been a cornerstone of Western European security. However, this aspect of transatlantic relations has been undermined by recent shifts in U.S. foreign policy priorities and Russia's military expansion.
A new era? Rising tensions in the U.S.- EU relationship
With the re-election of Donald Trump, tensions have emerged in the transatlantic alliance, driven by tariffs and the American threat to withdrawal of support for Ukraine — a major defense concern for the EU, given that the U.S. was one of the main economic supporters of Ukraine.Economically, the U.S. government initially imposed a 25 percent tariff on automobile import's, alongside with the 20 percent tariff on all foreign goods—measures expected to significantly impact the European economy. Countries like Germany, Slovakia, and Spain - major car manufacturers in Europe —could be hit particularly hard, given their reliance on the automotive industry for economic growth.In retaliation, the EU imposed counter-tariffs worth 26 billion euros on U.S. goods, escalating the situation into a trade war and signaling a break from the traditionally cooperative transatlantic relationship. However, following Trump’s April 9 announcement to pause the universal tariffs affecting the EU, the bloc responded with a 90-day suspension of its countermeasures.
In July, the President of the United States announced 30 percent tariffs on EU imports, set to take effect in August. Rather than responding with immediate countermeasures, the EU opted for a diplomatic approach, paving the way for negotiations that ultimately led to a recently signed trade agreement with the U.S. government.
The new agreement imposes a 15 percent tariffs on all the EU goods. While experts argue that the new agreement will still impact the future of the European economy, most agree that Brussels was not totally defeated, as the agreement marks an important climbdown from the initial 30 percent threat. Other aspects of the agreement include the EU's purchase of 750 billion dollars worth of oil from the U.S. and zero tariffs on aviation products. The auto industry remains the biggest concern among EU members, given the new baseline 15 percent tariff.
