European Commission President Ursula von der Leyen speaks, while sat with U.S. President Donald Trump, after the announcement of a trade deal between the U.S. and EU, in Turnberry, Scotland, Britain, July 27, 2025.
Evelyn Hockstein | Reuters
Relations between the U.S. and European Union have been thorny this year with differences over how to support Ukraine, trade tensions and tariffs, dominating a tense period of diplomacy between the power blocs.
But, in a somewhat ironic twist of the ongoing Ukraine war, a shared sense of frustration and suspicion of Russia’s refusal to come to the negotiating table has brought the U.S. and EU closer together.
A united front was seen this week, with Washington and Brussels announcing complimentary packages of sanctions targeting Russia’s oil and gas industry.
The U.S.and EU are on the same page when it comes to pressuring Russia to bring an end to the war in Ukraine, Andrew Puzder, the U.S. Ambassador to the European Union, told CNBC Thursday.
“President Trump has been adamant that he wants to see this war end … But when you see the negotiations aren’t going the way you want them to go, you need to ramp up the pressure,” Puzder told CNBC’s Silvia Amaro in Brussels.
He noted that the U.S. and EU’s almost simultaneous sanctions packages are “an indication that we need to step it up. We’re willing to step it up, and hopefully Vladimir Putin will get the message and understand that the war needs to come to an end. He doesn’t seem to have gotten that message yet, but hopefully this will bring it home,” he said.
U.S.-EU relations had generally improved in recent months in a number of geopolitical and economic areas, Puzder said, noting, “we may not always agree but I think their motives are always good and I think they just look at things a little differently than we do,” he said.
On Wednesday, the U.S. Treasury announced new sanctions on Russia’s largest oil producers, Rosneft and Lukoil, while the EU on Thursday adopted its 19th package of measures against Moscow, banning Russian liquefied natural gas imports and targeting its finance industry and military industrial complex.
Washington’s latest actions were cheered by Ukraine and the EU following concerns last week that U.S. President Donald Trump could side with Russia when it came to a resolution to the war, after he appeared to parrot the Kremlin’s position that Ukraine should cede occupied territory to Russia as part of a peace deal.
Trump appeared to reverse that stance on Wednesday, however, when he said he had found that talks with Russian President Vladimir Putin “don’t go anywhere,” and that he’d decided to cancel a summit with Putin that was meant to take place in Hungary in the next few weeks.
Needless to say, the sanctions, Trump’s criticism of Putin and the cancelation of in-person talks, elicited a stony silence from Moscow on Thursday.
Puzder said that during his time in the ambassadorial post, he had noticed the EU and U.S. become more aligned on a number of other matters, including China and on immigration.
“I think on those issues we’re moving closer together and I think the trade agreement was huge for both [sides],” he said, praising European Commission President Ursula von der Leyen for negotiating a deal that he said “was better than any other country [Trump’s] negotiated with.”
Bad start
U.S.-EU relations took a dive when Trump returned to office at the start of the year with the U.S. leader taking immediate aim at the bloc, accusing it of unfair trade practices on the grounds that it has run a persistent trade surplus when it comes to the exchange of goods.
In January, Trump told the World Economic Forum in Davos that, “from the standpoint of America, the EU treats us very, very unfairly, very badly.”
He has repeated that position and perspective at various times this year and while the EU has denied the accusations, U.S.-EU trade data does shows it has enjoyed a trade surplus (at least when it comes to goods) with the U.S. for years.
European Council figures for 2024, for example, show total trade between the EU and U.S. amounted to 1.68 trillion euros ($1.97 trillion) but while the EU ran a trade surplus in goods, it recorded a deficit in services with the U.S. When both goods and services were taken into account, the bloc had a surplus of around 50 billion euros last year.
That data informed Trump’s decision to impose, initially, a 30% tariff on EU goods imports entering the States, much to the bloc’s dismay. He then lowered the tariff to 15% as part of the framework of a trade agreement reached in July, which was higher than the 10% levy the EU was hoping for.
The EU also agreed to purchase $750 billion worth of U.S. energy and invest an additional $600 billion worth of investments into the U.S.
Ambassador Puzder said trade relations were going to improve as the trade deal was put into practice.
“As we turn that framework into a finalized agreement, I think it’ll be to great benefit of both countries and continue this great transatlantic relationship that we have had for 250 years.”
