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Since forming the European Economic Community (EEC), the US and the EU have enjoyed a stable– if not good, relationship. Both the EU and the US have seen in each other a stable economic and defense partnership with NATO and positive trade relations. Transatlantic trade alone has reached an all-time high of $1.2 trillion in 2021. However, the rise of far-right populism and Sino-American competition has strained relations between the transatlantic allies. The 2016 election of Donald Trump compromised American leadership in NATO through questioning to keep the multi-lateral alliance with only a portion of European members paying their 2% threshold.