The European Union expects that the President Donald Trump will prevent the fits of the American commercial partners, economists in danger that they will have consequences for companies on both sides of the Atlantic and consumers.
Trump President said he would begin to ship this weekend Fares Increase letters The US began on Monday to countries that do not achieve appropriate commercial agreements. Japan and South Korea The first recipients wereTRUMPEN Administration sent to President of Shigeru Ishiba and South Korea on Monday, indicating that the rates of 25% of the corresponding countries will be established in August 1.
Trump imported 20% in early April’s import import imports in EU products, as part of a group of rates aimed at countries with commercial countries. Since its specific national duties, he maintained the 10% standard rate of financial markets in the standard 10% of July.
However, with the EU attitude, he expressed grief in commercial lectures.
The EU Executive Committee managers trade issues for 27 members of BLOC, which he said of his leaders expect to face Trump Administration. Without one, the EU said he was ready to avenge hundreds of products about American products, from cows and car parts to beer and boeing aircraft.
The US Treasury Scott Bessent said “The EU was very slow on Sunday,” but the talks were now “good progress”. “
Here are important things to find out about the trade between the United States and the European Union.
“The most important” trade relationship
The European Commission describes the US and EU trade trade “the most important commercial relationship”.
The EU in US trade value was 1.7 trillion euros (2 billion dollars) in 2024, or an average of 4.6 billion euros per day, according to Ebostat EUR Statistics Agency.
The largest export to Europe was crude oil, followed by pharmacies, aircraft, automobiles and medical equipment and diagnoses.
The largest exports in Europe were pharmacies, cars, aircraft, chemicals, medical instruments and wine and spirits.
Trump accusates goods over the 198 billion euro in the EU, which Americans buy more things from European business than the other way around.
However, American companies fill some gaps outside the EU, such as cloud computing, travel reserves and legal services and legal services.
Surplus of USA services adopted the National Trade Deficit with the EU 50 trillion euros (59 billion dollars), representing less than 3% of the USA-EU general trade.
Before the Trump returns to the office, the US and EU generally maintained the cooperative trade relationship and low levels on both sides. The US rate was 1.47% for European goods, and the EU was about 1.35% for American products.
A long-time attitude is not so ally
But the White House has taken much more pleasant attitude since February. The European Asset Rate rate has floated together with the incident, the EU has undergone 50% of its administration in steel and aluminum, and a tax of 25% of imported cars and parts.
Trump has proposed a number of issues aimed at administrative officials.
Trump has also criticized Europe’s value-added taxes, with EU countries at the point of sales 17% and 27%. But many of the economists see as a spectator as a neutral trade, as applied to household goods and services and imported services. National government established taxes through legislation, EU does not have a table in trading negotiations.
“Around the thorns of the regulations, consumer standards and taxes, the EU and its Member States cannot give many land,” the German economist Holler said in the German Bank. “They can’t change the way you get an extensive internal market in the EU, which is rooted in a wrong way of understanding how the EU works.”
The US consumer would take the most
Economists and companies say higher rates will assume higher prices for US consumers in imported goods. Importers must decide to absorb the costs of more tax costs to absorb smaller amounts and how much to spend customers.
The US Mercedes-Benz sellers said they hold the line at 2025 model price prices “noticed.” The German car has a partial rate, in Tuscaloosa, Alabama, 35% of Mercedes-Benz sold in the US, but the company expected to be “significant increase” in the coming years.
Simon Hunt, Director General of Italy and Spirits at Campari Group, investment analysts said that prices could be increased or remains equal to some products, because of what the opponents do. If competitors rise prices, the company can decide to have heavenly prices for skyy vodka or Aperol Aperitif’s market share, he said hunting.
Trump argues that foreign companies are more difficult to sell in the US, which is a way to stimulate the resurrection of American manufacturing. Many companies have ruled out the idea or would take years to give positive economic benefits. However, some corporations have shown that they are ready to change some American production.
France-based Luxury Group LVMH, Tiffany & Co., Luis Vuitton, Christian Dior and Moet and Chandon, could be taken to the United States.
Arnault, who participated in the inauguration of Trump, has asked Europe to achieve a deal based on mutual concessencing agreement.
“If we end up with high rates … We will be forced to avoid increasing production based on our US,” Arnault said. “And if Europe does not negotiate intelligent, that will be the result of many companies. It will be the fault of Brussels if that.”
Some predictions indicate that the US economy would be at risk if negotiations fail.
Without agreement, EU would lose 0.3% of the gross product and GDP would lose 0.7%, if Trump imported goods with 10% rates, Bruegelek BruegoG, according to a research review of Bruessel.
Given the complexity of some issues, both sides can reach a framework agreement before the Wednesday period. This would leave the 10% base rate, as well as car, steel and aluminum rates, until the details of a formal trade agreement is ironed.
The probably the result of trade talks “The US will agree to return the worst threats of fares beyond 10%.” Said Schmieding. “However, the path to reaching it might be rocky.”
The US offers us the exceptions of a sale can smooth the path of a deal. The EU can alleviate some regulations that see the white houses as an obstacle.
“While Trump’s” won “the result, the end victims of his protectionism, of course, would be US consumers,” Schmieding said.
