Hede,
Fareed Zakaria explains concisely in his column in the Washington Post and his weekly program on CNN.
The problem is gigantic because political forces are working opposite to economic ones. This is happening also in America, but interstate trade (including its multiple intricacies) remains uninterrupted, whereas they are between the individual EU countries.
I differ from you in that the EU has creative and technical ability and available investment but lacks marketability.
The EU is not working as designed. And, of course, Brexit hurt ALL. The politically unpalatable remedy is much greater unity.
America has become increasingly isolationist and protectionist, which will hurt our standard of living and our security. Americans are increasingly antagonistic toward China, which is hard to shake.
I invite you to read "Americans Can Save $11,000 by Buying Chinese EVs."
Many thanks. Best.