Just two years after President Biden declared an end to acrimonious trade disputes with Europe, the U.S. has imported more goods from Europe than from China, with U.S/UK trade increasing 15% year on year.

Ocean freight capacity deployed on the trans-Atlantic trade has been outstripping demand, encouraging shipping lines to inject more capacity and take advantage of elevated rates, which has seen lines earn three-time more per nautical transatlantic mile, than on Shanghai–Europe routes.

Germany’s exports to the U.S. surged by almost 50% year-over-year in September, while the U.S. is becoming one of Europe’s biggest energy suppliers, replacing Russia as a natural-gas supplier.

The U.S., which is the UK’s largest trading partner, is becoming particularly attractive to European firms in the current geopolitical context and with Europe facing a major energy crisis and inflation, access to cheap oil and gas, skilled workers and government support to build clean-energy infrastructure is compelling.

The U.S. economy still has considerable momentum and an∂ forecasts suggest it was on course to import goods and services worth $4 trillion last year, around one-third more than in 2019.

Increasing trade with the U.S. isn’t without its challenges, with protectionist policies on both sides of the Atlantic and the Biden administration showing little interest in re-starting talks on a free trade agreement (FTA) with the UK.

In the absence of a FTA, the UK has been negotiating trade agreements with individual states, agreeing its third such deal with South Carolina in December, who join North Carolina and Indiana in signing memorandums of understanding on trade, which are not legally binding.

The UK is seeking similar deals with California and Utah, and a growing number of U.S. states, including Texas, are interested in joining.

Britain has signed trade agreements with Japan, Australia and New Zealand since leaving the European Union, and hope to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, which may pave the way for a FTA with the U.S.

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