Here is what is going on. President Trump wants the US out of a lot of bad trade deals. Both the European Union and what is becoming what I call the Chinese Federation (thanks in part to the anime Code Geass.) Both are failing because of currency manipulation and funding countries that refuse to manage themselves properly.
If the United States pulls out of those trade deals I estimate each union will lose about 10-25% of their overall revenue. I personally think that if the EU pays Greece another bailout they will start looking at merging with the Chinese Federation.
As its ties with its largest trade partner the United States are becoming increasingly uncertain, the European Union (EU), relying on international trade to keep its economic recovery on track, is looking to China.
The post-Brexit EU is seemingly in a perpetual crisis, and with US President Donald Trump now in the White House, trade protectionism remains a big worry for many. It can safely be concluded that transatlantic trade deals are currently on the rocks.
Last week, EU Trade Commissioner Cecilia Malmstroem said the bloc is ready to stand with China in the fight against protectionism. “If others around the world want to use trade as a weapon,” she said, “I want to use it as a tonic; a vital ingredient for prosperity and progress.”
Source: Tactical Investor
EU looks to China amid transatlantic trade uncertainties