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US–EU Trade Relations in the Trump Era: Which Way Forward?

This paper recommends a framework for strengthening US–EU trade relations and achieving successful trade talks in the current era of protectionism.

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Although the US and the EU remain each other’s largest trade and investment partners, there has latterly been some turbulence in transatlantic economic and political relations. A major source of friction have been the US tariffs on imports of steel and aluminium, introduced by the Trump administration in the name of national security, and the EU’s retaliatory tariffs.

Building on a simulation exercise on US–EU trade talks in an era of protectionism, supported by the Konrad Adenauer Stiftung, this paper concludes with a set of policy recommendations. A multifaceted approach aimed at both the transatlantic market and the global trading system could provide the best way forward in the current political and economic environment.

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