The tariff war between the US and the EU could reduce transatlantic business by $9.5 trillion a year, Reuters reported, citing a report by the American Chamber of Commerce in the EU.
According to him, trade in goods and services between the US and the EU reached a record $2 trillion in 2024, but Washington's new tariffs on steel and aluminum, as well as threats of 200% duties on European wines and other alcoholic beverages, could destroy this momentum. At the same time, the bulk of transatlantic business consists of investments and sales in foreign branches of large corporations.
The agency, citing the lead author of the report, Daniel Hamilton, notes that intra-corporate trade, which accounts for 90% of Ireland's exports and 60% of Germany's exports, will be affected, with the effect spreading to the services and energy sectors, including LNG supplies from the United States. Experts from the House of Representatives have questioned the benefits of US President Donald Trump's tariffs, calling for their counterproductive effect on both economies to be taken into account.
On February 10, US President Donald Trump ordered the introduction of a 25% tariff on all foreign steel and aluminum imports into the country. The decision, which took effect on March 12, applies to shipments from Argentina, Australia, Brazil, the United Kingdom, the European Union, Canada, Mexico, South Korea and Japan. On March 4, the US administration imposed a 25% tariff on almost all imports from Canada and Mexico, and also raised tariffs on goods from China from 10% to 20%.
On March 13, Trump said that the US could impose a 200% tariff on alcoholic beverages, including wine, from EU countries if the community does not lift tariffs on American whiskey. The EU announced the introduction of similar trade restrictions in response to US tariffs on aluminum and steel from Europe.