US eyes EU trade progress; no major China breakthrough expected

TheUnited States is expressing optimism about advancing trade discussions with the European Union, even as expectations for a major breakthrough in trade relations with China remain low. According to senior U.S. officials, upcoming diplomatic engagements are likely to focus on strengthening transatlantic economic ties, particularly in areas like technology, supply chains, and green energy cooperation. These efforts are seen as part of a broader strategy to enhance economic resilience among allied nations in the face of global uncertainties.

The Biden administration has prioritized rebuilding alliances and fostering closer economic cooperation with Europe, especially after the trade tensions that characterized the previous administration. Ongoing discussions between U.S. and EU officials have centered on resolving long-standing disputes over tariffs, such as those related to steel and aluminum, and aligning standards in critical areas like artificial intelligence, cybersecurity, and semiconductor production. Both sides are also exploring joint efforts to reduce dependence on Chinese supply chains and to develop a more coordinated approach to regulating big tech companies.

While progress with the EU appears promising, relations with China remain complicated. Despite a recent series of high-level meetings between U.S. and Chinese officials, including visits from Secretary of State Antony Blinken and Treasury Secretary Janet Yellen, little movement has been seen on major economic issues. Points of contention include tariffs imposed during the U.S.-China trade war, restrictions on American tech exports, and China's alleged unfair trade practices and state subsidies.