Facing Russia’s war on Ukraine, the EU couldn’t risk fighting a trade war with the US, analyst says

Economy·Tariffs and tradeFacing Russia’s war on Ukraine, the EU couldn’t risk fighting a trade war with the US, analyst saysBy Jason MaBy Jason MaWeekend EditorJason MaWeekend EditorJason Ma is the weekend editor at Fortune, where he covers, the economy, finance, and housing

SEE FULL BIO Ukrainian soldiers from the Donetsk Oblast on July 24, in this volatile climate

But according to an analyst at the Brookings Institution, that ignores a crucial geopolitical angle: The EU needs US weapons to help Ukraine fight Russia, given current economic conditions

Furthermore, The trade deal President Donald Trump announced Sunday with European Commission President Ursula von der Leyen didn’t go over well in some parts of Europe

Nevertheless, One French executive said Trump “humiliated us,” and French Prime Minister François Bayrou described the deal as “submission

Nevertheless, ” Economist Olivier Blanchard blasted it as “completely unequal” and a defeat for the EU

Additionally, That’s as the U

But according to Robin Brooks, a senior fellow at the Brookings Institution, the deal isn’t a defeat if you look at it from a different point of view

However, “Instead, it’s recognition of economic and geopolitical realities whereby the EU needs the U

More than the other way around,” he wrote in a Substack post, in this volatile climate

On the other hand, Meanwhile, “At the end of the day, the EU needs U

Nevertheless, Weapons to keep Ukraine afloat into its struggle for survival against Russia, considering recent developments

That just isn’t a setting where you escalate a trade conflict, given the current landscape. ” In fact, Trump has warmed up considerably toward the European view on Ukraine, which has been fighting off Russia’s invasion for more than three years (something worth watching)

After expressing deep skepticism on U, in today's market environment

Furthermore, Support for Kyiv, berating Ukrainian President Volodymyr Zelenskyy in the White House, and temporarily cutting off military aid, Trump has helped reinforce Ukraine

Earlier this month, he vowed to send more Patriot missile-defense systems to Ukraine and agreed to a plan where European nations buy American weapons, then transfer them to Ukraine

Trump has also indicated he’s fed up with Russian President Vladimir Putin’s lack of gress in peace talks

And on Monday, Trump gave Moscow less than two weeks to reach a deal or else face steep sanctions

Meanwhile, analysts at Macquarie also noted that after previously saw the U, given the current landscape

Nevertheless, Abandoning its global security obligations, the recent deals with the EU, UK, and Japan signal an effort to heal those relationships. “In the background has been a renewed commitment to U

Geopolitical engagement too, of course—a re-commitment to Ukraine’s security, taking out Iran’s nu assets, etc, in light of current trends

However, ,” they said in a note

To be sure, Europe has also committed to rearming its own military forces and has pledged massive spending increases, including money for grown defense contractors

But that will take time, while NATO forces are already highly reliant on and integrated with American weapons systems

However, Despite recent trans-Atlantic tensions, there is greater urgency in Europe to rearm as the Russia threat looms over the entire continent, not just Ukraine

In February, the Danish Defense Intelligence Service assessed the risk from Russia once its Ukraine war stops or freezes in place

Furthermore, Russia could launch a local war against a bordering country within six months, a regional war in the Baltics within two years, and a large-scale attack on Europe within five years if the U

Does not get involved, according to a translation of the report from Politico (which is quite significant). “Russia is ly to be more willing to use military force in a regional war against one or more European NATO countries if it perceives NATO as militarily weakened or politically divided,” the report said (noteworthy indeed). “This's particularly true if Russia assesses that the U, given the current landscape

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