Donald Trump is setting his sights on the other side of the Atlantic, suggesting on Sunday that he would impose new tariffs on European imports — just a day before pausing similar actions against Canada and Mexico.
The EU recorded a $156 billion goods surplus with the United States in 2023, part of the US’ total global imports of $2.4 trillion that year.
Germany leads EU exports to the US at €131 billion, while the Netherlands tops imports at €76 billion. Post-Brexit Britain has maintained more balanced trade, exporting £60.4 billion in goods to the US while importing £57.9 billion.
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Car manufacturers, chemical companies, and pharmaceutical firms would face the biggest impact from potential tariffs. The machinery and transport sector dominates both EU and UK exports to the US, exceeding €200 billion combined in 2023.
The National Institute of Economic and Social Research warns a 10% US tariff on all imports could cut global growth by 1% over two years if trading partners retaliate.
Markets have already reacted to the threats. US 30-year Treasury yields have jumped from 3.9% to above 4.7%, while UK borrowing costs have climbed from 4.3% to 5.1%.
French President Emmanuel Macron has pledged EU collective action against any new tariffs. Britain must now navigate trade relationships independently, as Prime Minister Keir Starmer seeks ties with both the US and EU.
Previous trade disputes saw Trump target French wines, Italian luxury goods, and Scottish whiskeys. The EU responded with tariffs on American products including Kentucky bourbon and Harley-Davidson motorcycles.
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