Why Europe’s trade deal with the US is better than it seems

“There was this self-perception that the EU is a heavyweight that can go toe-to-toe with the US, and that has been the case in previous situations,” says Aslak Berg of the Centre for European Reform in London. “But the US has not chosen to play by the rules anymore.”

By “the rules,” Mr Berg is referring to two tenets of the World Trade Organization. First, that tariffs should only be imposed under certain conditions. And second, that unless one nation has a free trade agreement with another, it has to treat all nations the same. These rules are aimed at maintaining predictability and fairness, and Mr. Trump has wholly ignored them.

He argues that the US is merely trying to rebalance what he considers unfair trading relationships. But his tactics have given the US an obvious advantage. “You can use US market access as a tool,” Mr Berg says.