President-elect Donald Trump’s upcoming inauguration has sparked concerns regarding the future of relations between the United States and the European Union (EU). With promises of imposing tariffs on imports and skepticism towards US support for Ukraine, tensions are rising. However, the necessity of cooperation, particularly in the technology sector, is crucial for both economies.
The Trade and Technology Council (TTC) initiated by the Biden administration reflects the importance of partnership in technology issues. Collaboration is vital in areas such as telecommunications, semiconductor manufacturing, and acquiring critical minerals and raw materials. Both the US and EU rely on China for these resources, highlighting the need for self-sufficiency and investment in local manufacturing.
The EU must navigate differences with the Trump administration, particularly in areas like sustainability and trade. By maintaining a cooperative approach and engaging in strategic negotiations, the possibility of blanket US tariffs against the EU can be averted. Ensuring a focus on mutual interests will be essential for the US and EU to effectively compete with nonmarket economies and address strategic challenges in the coming months.
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