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This growing tension raises vital questions about the trade relations of the EU with both the U.S. and China, and whether the EU is contemplating a strategic pivot towards China as a response to U.S. tariffs.
Understanding the Current Trade Dynamics
To comprehend the complexities of the situation, it is critical to examine Europe's existing trade relationships. The U.S. and EU trade relationship currently ranks as the largest bilateral trade agreement globally. Notably, in recent years, during the Biden administration's tenure, both the U.S. and the EU adopted a strategy known as "de-risking." This initiative aimed to limit certain imports from China while maintaining competitive advantages without instituting sweeping tariffs.