The US is set to impose retaliatory tariffs on European products in response to EU tariffs on American goods. The move will disproportionately affect states with significant exports to the EU, including California, Tennessee, and Michigan.
Tennessee whiskey and California almonds are among the top US products exposed to economic harm from a decline in EU sales. According to research, EU tariffs on US whiskey exports dropped by 42% after the initial trade war, but exports remained low until the tariffs were suspended. The European Union represents 37% of California’s exports to the world.
Rearview mirrors from Michigan are also at risk, with companies exporting $519 million worth of products to the EU in 2024. The US and EU are engaged in a tit-for-tat tariff threat, with President Trump threatening 200% tariffs on EU wine and alcohol.
The impact will be felt across various industries, including manufacturing and pharmaceuticals. Arizona’s molybdenum exports to the EU are also under threat, as well as South Carolina’s flexible polymer ethylene copolymers. European automakers export more vehicles to the US than American automotive exports to the EU.
With a record goods trade deficit of nearly $236 billion in 2024, the US relies heavily on Europe for high-value manufactured goods like vehicles and pharmaceuticals. Targeted tariffs on these sectors could put significant pressure on European manufacturers, creating strong incentives for Brussels to negotiate.
Source: https://www.cnbc.com/2025/03/13/almonds-whiskey-auto-parts-where-eu-tariffs-will-hit-hardest.html