There are two dominant global economic powers: the United States and China. In contrast, the countries of the European Union and the United Kingdom are struggling. Over the past two decades, the U.S. has maintained its leading position in the world economy, at around 26% of global GDP. China continues to grow its share of the world’s economic pie. By contrast, Europe has lost significant market share. Bluntly, Europe is no longer a credible major power.
That matters in part because in the next few weeks, the U.S. is set to raise tariffs on the exports of EU countries into the U.S. The U.K. has already reached a trade agreement with the Trump administration. The EU’s problem here is that it is fractured politically and does not have the power to negotiate from a position of strength.
