June summits signal progress on EU-US trade ties

Significance

The two sides have suspended tariffs arising from their dispute over subsidies to Airbus and Boeing, are working on an international deal on corporate taxation and have established a high-level council to discuss issues at the nexus of security, technology and trade.

Impacts

• A major aim of closer transatlantic cooperation is better coordination of policies with respect to China.
• Closer transatlantic cooperation over China might soften US opposition to the Nord Stream 2 gas pipeline.
• It will be difficult for the US government to pass legislation concerning trade given the Democrats' precarious majority in both houses.