UE - US: new barriers to trade

Abstract

The article analyses the reasons for the complication of trade and economic relations between the European Union and the United States in recent years. The first section is devoted to the failed bilateral TTIP project, which was given strategic importance under the Obama administration. The destructive role of the Trump administration's policy toward the EU is noted. The hopes of improving bilateral relations after the arrival of the Biden administration were justified to a limited extent. New areas of conflict have emerged alongside the resolution of existing trade disputes. The Inflation Reduction Act adopted in the U.S. in 2022 became the most acute cause for discord. It has not yet been possible to reach a full agreement on how to mitigate negative consequences of this law for the EU. The EU, for its part, is forced to take retaliatory measures to protect its interests, including by strengthening its technological sovereignty, protection from economic coercion by third countries, etc. The analysis of emerging contradictions between the U.S. and Europe in the 21st century in trade and economic sphere leads to the conclusion that their most important cause is the increase in geopolitical rivalry throughout the world, due to which trade is progressively affected by geo-political reasons. At the same time, the problem of confrontation with China intensifies the differences between the U.S. and the EU.