The article discusses the tense relationship between the US and the EU, stemming from the trade war initiated by Donald Trump's administration. Despite a 90-day tariff truce, significant strain remains, with limited progress in negotiations. The meeting between Spain's economy minister and the US Treasury secretary exemplified this tension.
Spain attempted to de-escalate tensions, emphasizing the lack of winners in a global trade war and seeking open communication. However, the US response was firm, using non-trade issues like increased military spending and opposition to the 'Google tax' as leverage. The EU also faces similar challenges.
The US, under Trump, seeks to create a united front against China, demanding the EU impose similar tariffs, creating difficulty due to significant EU exports to China. Investor distrust of the US strategy is evident, demonstrated by investors liquidating dollar and US bond holdings, leading Trump to temporarily pause trade war measures.
The EU has offered significant concessions including the removal of all tariffs on industrial goods but has made limited progress. The US has imposed tariffs on steel, aluminum, and European cars, with no significant EU retaliation. The EU drew two red lines, stating that they will not relax food safety and sanitary regulations nor regulations concerning digital and technological markets.
Spain implemented a 14.1 billion euro aid package to mitigate the effects of the trade war and has realized that they are treated as commercial rivals rather than allies. The visit from the Spanish economy minister served to show that Spain and the EU are no longer seen as friends by the US.