Middle East in English📡 Al JazeeraJul 1, 2026👁 4 views

Caught between the US and China, can Europe remain competitive?

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Caught between the US and China, can Europe remain competitive?

As trade tensions grow, Europe tries to remain competitive while balancing ties with the US and China.

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Europe has been an economic powerhouse for decades. Today, it is struggling to keep up.

Economic growth has slowed due to high energy costs, regulation and weak investment, which have weighed on industry.

Meanwhile, trade tensions have continued to rise.

President Donald Trump has threatened 100 percent tariffs on European nations over digital services taxes, despite a new trade deal between the two sides.

Brussels and Beijing have set an October deadline to ease trade disputes.

With pressure mounting on multiple fronts, can Europe preserve its economic model while staying globally competitive?

Published On 1 Jul 20261 Jul 2026

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