The European Union’s trade policy is undergoing a profound transformation. The intensification of tensions between the United States and China, the resurgence of aggressive tariff policies, the coercive exploitation of economic interdependence and the increasing strategic significance of critical supply chains have compelled Europe to rethink its strategy. As a large open economy that is exposed to both external vulnerabilities and internal fragilities, the Union must now use trade policy to secure market access, reduce dependencies, diversify partners, and strengthen strategic autonomy.

In this context, European trade policy is becoming increasingly intertwined with industrial policy, economic security, climate transition, energy policy, and defense. This article analyses this evolution, focusing on relations with the United States and China, the new role of preferential trade agreements, and the European strategy of diversification towards India, Mercosur, Africa, and the Indo-Pacific. The result is a Union attempting to reconcile openness and protection, values and interests, sustainability, and competitiveness. However, a significant challenge also becomes apparent: bridging the gap between strategic ambition and political capacity. The future of European trade policy, and more broadly the EU’s role in the emerging global disorder, will be determined here.