Title: From Trade War to Uneasy Partnership: The US–EU Framework Agreement and Its Implications for China

Author: Jiang Feng’an

Keywords: Reciprocal Tariffs, WTO, Most-Favoured-Nation Treatment, Bilateral Preferences

Abstract: In the context of the escalation of tariffs and geopolitical tensions, the US–EU Framework on an Agreement on Reciprocal, Fair, and Balanced Trade (Framework Agreement) of 2025 represents a pivotal moment in transatlantic economic relations. This article examines the background of this agreement, its key provisions, implementation challenges, and implications for China. It highlights the four pillars of the agreement: tariff measures, non-tariff measures, investment and procurement commitments, and cooperation on third-country policies. The EU faces numerous institutional and rule-of-law challenges, including parliamentary scrutiny and legal constraints, that hinder full implementation. From China’s perspective, while the agreement introduces targeted regulatory alignment and potential constraints on industrial and technological activities, it also creates an opportunity to encourage a more autonomous and balanced EU trade policy toward China. Therefore, this article suggests that China should prioritize proactive, institutional-level cooperation with the EU to “co-shape” regulatory frameworks in emerging sectors such as green transition, data governance, and AI regulations, while strengthening multilateral rules through World Trade Organization (WTO) reform and alignment with high-standard trade mechanisms. Through institutional channels and rules-based engagement, China can enhance bilateral and multilateral collaboration, mitigate unilateral pressures, and contribute to a more stable, inclusive, and rules-based international economic order.

Keywords: US–EU Framework Agreement, US–EU Trade Deal, Transatlantic Economic Relations, EU Policy Toward China, Rules-based International Trade