Professor Alan Matthews provides an in depth authoritative look at the US-EU trade relationship in 2025: https://capreform.eu/navigating-the-eu-u-s-trade-relationship/
He expects the relationship to break down in 2026. How should the EU respond? There aren't many or indeed any good choices. Retaliation is not very effective given the EU's limited ability to inflict pain on the US economy.
However, that does not mean a passive acceptance of the status quo. Matthews argues:'The necessary response is to reduce our dependencies to allow more room for manoeuvre in any future stand-off, recognising that this is easier said than done.'
