The 30% United States rate on European Union (EU) products, announced on Saturday (12), can reach companies and consumers on both sides of the Atlantic. The measure should make products such as French cheeses, Italian leather items, German electronics and Spanish medicines in the US.
The European Commission classifies business relationship with the US as “the most important in the world.” In 2024, the value of bilateral trade of goods and services totaled 1.7 trillion euros (US $ 2 trillion), or 4.6 billion euros per day, according to Eurostat. The main US exports to Europe were oil, medicines, aircraft, cars and medical equipment. From Europe to the US: medicines, cars, aircraft, chemicals, medical instruments and alcohol.
In April, Trump proposed a 20% tariff for EU goods as part of a package of measures against countries with which the US has commercial deficit. He later threatened to raise the rate to 50% in the face of slow negotiations. Until the beginning of the week, the European Commission was still expected to close a deal with Washington. Otherwise, he announced that he was ready to retaliate with tariffs on American products such as beef, beer and Boeing planes.
Criticism of the surplus
Trump has criticized EU’s 198 billion euros commercial surplus with the US. However, US companies compensate part of this with surplus in services such as cloud computing, tourism, legal and financial services – reducing the total deficit to 50 billion euros (US $ 59 billion), or less than 3% of bilateral trade.
Before Trump’s return, the trade relationship was cooperative, with low rates: 1.47% for European products and 1.35% for Americans. But since February, the tone has changed. In addition to the new 30% rate, Trump imposed 50% tariffs on steel and aluminum and 25% on cars and European pieces. The US government also criticizes EU agricultural barriers, such as hormone or chlorine hormone or chicken, as well as tax -added chicken, seen as neutral by economists, but outside the negotiating table, according to Brussels.
Without agreement, the EU GDP may fall 0.3% and the US, 0.7%, according to the Think Tank Bruegel. The most likely scenario, analysts, the US is that the US retreates from the hardest threats and offer punctual exemptions, while the EU flexes some regulations.
