US-EU Relations: Russia Sanctions Unite Despite Trade Tensions

US-EU Relations: An Unlikely Alliance Forged in Russia Sanctions

The relationship between the United States and Europe has been a tumultuous one this year, marked by disagreements over a range of issues from support for Ukraine to trade tensions and tariffs. At one point, diplomatic relations between these two economic powerhouses were noticeably strained.

However, in a somewhat ironic twist amid the ongoing Russia-Ukraine conflict, shared disappointment and suspicion over Russia's refusal to return to the negotiating table have brought the US and EU closer together. This convergence was exemplified by the coordinated announcement of complementary sanctions packages targeting Russia's oil and gas sectors by both Washington and Brussels.

Andrew Puzder, the US ambassador to the EU, stated on Thursday that the US and EU are aligned in their need to pressure Russia to end the Russia-Ukraine conflict. "President Trump has always been adamant that this conflict needs to end…but when you see that negotiations are not going well, you need to increase the pressure."

Puzder pointed out that the US and EU launched the sanctions package almost simultaneously, adding, "That shows that we need to step up. We are willing to do that, and hopefully Putin will get the message, understand that this conflict needs to end. He doesn’t seem to get it yet, but hopefully this time he will."

According to Puzder, US-EU relations have generally improved in some geopolitical and economic areas in recent months. "We may not always agree, but I think their motives are always good, they just look at things somewhat differently than we do."

A Fresh Round of Sanctions

The US Treasury Department announced new sanctions on Russia's largest oil producers, Rosneft and Lukoil, last Wednesday. In turn, the EU adopted its 19th package of measures against Russia on Thursday, which bans imports of Russian liquefied natural gas and targets Russia's financial sector and military-industrial complex.

Washington's latest moves were welcomed by Ukraine and the EU. It comes after outside parties expressed concerns last week that President Trump might lean towards favoring Russia in resolving the conflict, as he appeared to echo the Kremlin's position that Ukraine should cede some occupied territory as part of a peace deal.

However, Trump appeared to reverse that position on Wednesday, stating that he found “no progress” in his talks with Putin, and decided to call off a summit that had been planned with Putin in Hungary in the coming weeks.

These sanctions, Trump's criticism of Putin, and the cancellation of the face-to-face meeting have been met with silence from Moscow.

Puzder also praised European Commission President Ursula von der Leyen for arranging a trade agreement that he believes is “better than any deal that Trump negotiated with any other country,” adding, “I think we are getting closer together on these issues, and I think the trade agreement is very important (for both sides).”

A Rocky Start

When Trump returned to the White House at the start of this year, US-EU relations took a turn for the worse. The American leader immediately turned his guns on the EU, accusing it of unfair trading practices, on the basis that the EU maintains a long-standing trade surplus in the exchange of goods.

In January of this year, Trump stated at the World Economic Forum in Davos that “From the US perspective, the EU treats us very, very unfairly, and very badly.”

He has reiterated this position and viewpoint multiple times this year. Although the EU has denied the accusations, US-EU trade data shows that the EU has indeed enjoyed a surplus in trade with the US (at least in goods) for many years.

For example, European Council data for 2024 shows that total trade between the EU and US amounted to €1.68 trillion ($1.97 trillion), but that while the EU holds a surplus in trade in goods, it runs a deficit in trade in services with the US. If both goods and services are included, the EU’s surplus last year was approximately €50 billion.

These data prompted Trump to initially decide to impose tariffs of 30% on EU goods heading to the US, much to the dismay of the EU. He later reduced the tariffs to 15% as part of a framework of a trade deal that was reached in July, but this remains higher than the 10% rate that the EU had hoped for.

The EU also agreed to purchase $750 billion of US energy, and add $600 billion of investments in the US.

Puzder stated that trade relations will improve as the trade deal is implemented. “When we translate this framework into a final deal, I think it will be of great benefit to both countries and continue our great transatlantic relationship that we have maintained for 250 years.”