Tariff War Jeopardizes $9.5 Trillion EU-U.S. Business

The U.S.-European tariff conflict is jeopardizing transatlantic business worth $9.5 trillion annually, the American Chamber of Commerce to the European Union (AmChamEU) warned, Philip Blenkinsop reported for Reuters.

AmChamEU's more than 160 members include Apple, ExxonMobil, and Visa. I Photo: AmChamEU

AmChamEU, whose more than 160 members include Apple, ExxonMobil, and Visa, highlighted in its annual Transatlantic Economy report a deepening relationship that reached record levels in 2024, including $2 trillion in goods and services trade.

The report describes 2025 as a year of both promise and peril for the world’s largest commercial relationship.

Of late, Washington has imposed tariffs on steel and aluminum, the EU has outlined plans for retaliation, and President Donald Trump has threatened 200% tariffs on EU wine and spirits.

Trump has frequently criticized the U.S. goods trade deficit with the EU, despite the fact that the U.S. enjoys a surplus in services, and has urged manufacturers to produce in America.

AmChamEU noted that trade is only part of transatlantic commercial activity and emphasized that investment is the true benchmark. “Contrary to conventional wisdom, most U.S. and European investments flow to each other rather than to lower-cost emerging markets,” it stated.

U.S. foreign affiliate sales in Europe are four times higher than U.S. exports to Europe, while European affiliate sales in the U.S. are three times higher than European exports.