Assessing the Impact of Trump's 'America First' Policy on EU-US Trade Relations (2017-2021): A Realist and Liberal Analysis

Abstract

This study examines the economic and geopolitical consequences of President Donald Trump’s “America First” policy on EU-US trade relations between 2017 and 2021. Through a realist theoretical lens, the paper analyzes three key case studies—steel and aluminum tariffs, the collapse of the Transatlantic Trade and Investment Partnership (TTIP), and the digital services tax dispute—to assess how unilateral protectionism disrupted transatlantic trade dynamics. Findings reveal that Trump’s policies eroded trust in multilateral institutions, triggered retaliatory measures from the EU, and exacerbated sectoral vulnerabilities in both economies. While the EU’s targeted responses (e.g., retaliatory tariffs) achieved short-term leverage, long-term cooperation suffered due to divergent regulatory philosophies and institutional paralysis. The study concludes that the “America First” era underscored the fragility of rules-based trade systems and highlights the need for adaptive strategies to reconcile economic interdependence with geopolitical competition.