The US and EU are in a trade standoff that threatens over $9.5 trillion worth of annual trade, according to the American Chamber of Commerce to the EU. The dispute began with the Trump administration’s 25% tariffs on foreign steel and aluminum, prompting retaliation from the EU.
European businesses have responded by threatening higher tariffs on US products such as whiskey, spirits, and cars. The UK exported $151 billion worth of aluminum and steel to the US last year. The US has also imposed levies on European goods, including SUVs and apparel.
However, experts argue that a trade war between the two regions would harm both economies. Malte Lohan, CEO of the American Chamber of Commerce EU, said that the transatlantic economy is “more than just a source of profit” but a common geoeconomic base for businesses. He called for negotiations to avoid a trade war.
The US and EU have significant differences in tariff rates, with notable exceptions including EU duties on cars, food, and beverages. The US also relies heavily on the EU for oil, gas, and coal imports. The tension between the two regions has sparked concerns about the global economic impact of the trade standoff.
Source: https://qz.com/trump-tariff-trade-dispute-europe-eu-trillion-economy-1851770341