WHAT TO EXPECT FROM THE RECENT US-EU TRADE TRUCE?

Abstract

Following the escalation of trade confrontations that marked the US-EU relationship over the recent months, President Donald Trump and the President of the European Commission, Jean-Claude Juncker, managed to conclude a trade truce at their White House meeting on July 25. Starting from the analysis of the reasons behind the US-EU trade dispute on the potential tariffs to be imposed by the Trump administration on car imports from the EU, the present article aims to: (1) highlight the circumstances of the recent armistice, along with its content and significance; and (2) reveal the reactions triggered by the new trade deal both in the EU and the US, alongside the related expectations. Even though the compromise removes the threat of an imminent trade war, the question arises whether the US and the EU will meet their commitments. According to the author, there is little hope for the two sides to strike a rapid agreement on the controversial trade issues.

Keywords

• US
• European Union (EU)
• trade policy
• tariffs
• trade war