EU-US trade relations will improve but not flourish

Significance

Biden's strong support for transatlanticism and multilateralism augurs well for a more understanding and cooperative trading relationship with the EU and will bring an end to the persistent uncertainty associated with Donald Trump's presidency.

Impacts

• US sanctions warnings against companies involved in building the Nord Stream 2 gas pipeline will likely remain for some time.
• Biden's commitment to addressing climate change could enable Brussels and Washington to coordinate carbon border taxes.
• Member state divisions over China will prevent the EU from fully embracing Washington's tough position.