Trade between the US and the EU

China and the US are seeking to create a trade deal to resolve the existing trade tension between the two countries. Meanwhile, the US is fighting the EU on trade, especially in the aerospace industry. The two major players in the aerospace industry are Boeing and Airbus, one from the US and the other from the EU. The US and the EU have fought in the World Trade Organisation and the results have shown no one has clean hands. My personal feeling about the timing is that at the moment Boeing needs some more time to restore the market trust.

Anyway, the trade tension between the US and the EU is stronger than previous. The EU and the US have already had some friction in terms of trade that Trump has repeatedly brought up German cars as a threat to the US auto industry as well as the national security. If we treat the EU as a single economy, this is the world largest economy which is even larger than the US economy in terms of GDP. The trade tension between the US and the EU is different from the trade tension between the US and China.

China and the US have different political systems and the EU share similar political systems with the US. Moreover, many EU countries are also NATO member countries. It means the differences between the US and the EU are smaller than the differences between China and the US, this may imply it is easier for the EU and the US to achieve an agreement than for China and the US. Therefore, though the tension between the EU and the US seems growing, the disagreement between these two Western powers could take less time than the disagreement between the US and China to be resolved.