The American tariff threatens European commodities to get rid of the largest trade relationship in the world – national

The European Union expects to discover on Monday whether President Donald Trump will impose definitions to punish the largest commercial partner in America in a move warning economists not to have repercussions on companies and consumers on both sides of the Atlantic Ocean.

Trump imposed a 20 percent import tax on all European Union products in early April as part of a set of definitions targeting the countries of the United States with commercial imbalance. Hours after the nation’s special duties, put them in waiting until July 9 at a record rate of 10 percent for quiet financial markets and allows time for negotiations.

However, Trump expresses its dissatisfaction with the position of the European Union in commercial talks, he said that it will increase the rate of tariffs on European exports to 50 percent, which may make everything – from French cheese and Italian leather goods to German electronics and Spanish pharmaceutical – more expensive in the United States

The Executive Committee of the European Union, which deals with commercial issues of countries that include 27 members of the bloc, said that its leaders hope to reach an agreement with the Trump administration. Without one, the European Union said it was ready to avenge the customs tariff for hundreds of American products, from beef and car parts to beer and Boeing aircraft.

US Treasury Secretary Scott Payet told the “CNN” program “CNN” on Sunday that “the European Union was very slow to come to the table” but the conversations were now making “very good progress.”

Below are important things that must be known about trade between the United States and the European Union.

The United States Trade-the European Union is enormous

The European Commission describes the trade between the United States and the European Union as “the most important trade relationship in the world.”

The value of the European Union and the United States trade in goods and services reached 1.7 trillion euros ($ 2 trillion) in 2024, or on average 4.6 billion euros per day, according to the European Union Statistics Agency.

The largest export of the United States to Europe was crude oil, followed by medicines, planes, cars, and medical and diagnostic equipment.

Europe’s largest exports to the United States were medicines, cars, aircraft, chemicals, medical tools, wine and spiritual drinks.

The European Union sells more than vice versa

Trump complained about the surplus of the European Union trade, which amounts to 198 billion euros in goods, indicating Americans buying more things than European companies more than vice versa.

However, American companies fill some gap by bypassing the European Union when it comes to services such as cloud computing, travel and legal and financial services.

The surplus of US services took the country’s trade deficit with the European Union drop to 50 billion euros ($ 59 billion), which represents less than three percent of the total trade of the United States of America.

What are the issues that divide the two sides?

Before Trump returned to his post, the United States and the European Union maintained a collaborative trade relationship in general and low tariff levels on both sides. The average US rate was 1.47 percent for European commodities, while the average goods of 1.35 percent for American products.

But the White House has taken a lower friendly position towards the US ally for a long time since February. Along with the rate of fluctuating tariffs on European goods launched by Trump, the European Union is subject to a 50 percent tariff for steel and aluminum, and a 25 percent tax on vehicles and imported parts.

Trump administration officials have raised a large number of issues they wish to see, including agricultural barriers such as the European Union health regulations that include the ban on chlorine washed chicken and hormone treated beef.

Trump also criticized the value -added taxes for Europe, which the European Union countries blow at this year at the rate of 17 percent to 27 percent. But many economists see VAT as a commercial neutral because they apply to local goods and services as well as imported goods. Since national governments have set taxes through legislation, the European Union said they are not on the table during commercial negotiations.

“With regard to the thorny issues of regulations, consumer standards and taxes, the European Union and its member state cannot give many reasons,” said Holgar Schmiding, chief economist at Burnberg Bank in Germany. “They cannot change the way they manage the wide interior market of the European Union according to the demands of the United States, which is often rooted in a defective understanding of how the European Union work.”

“The result of many companies”

Economists and companies say that high definitions mean the high prices of consumers in the United States over imported goods. Imports must decide how much additional tax costs can be absorbed through lower profits and the amount of transition to customers.

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Mercedes-Benz dealers in the United States said they reserve the line on the prices of 2025 “until further notice.” The German auto industry has a partial introductory shield because it makes 35 percent of Mercedes -Benz vehicles sold in the United States in Tusciaosa, Alabama, but the company said it expects prices to be subjected to “great increases” in the coming years.

Simon Hunt, CEO of Wine and Spirits, told the investment analysts that prices can increase some products or remain as they are depending on what competing companies do. Hunt said that if the competitors raise prices, the company may decide to keep its prices on Skyy Vodka or Apertol Aperitif to get its share on the market.

Trump has argued that it is difficult for foreign companies to sell in the United States as a way to stimulate the revival of American manufacturing. Many companies rejected the idea or said it would take years to achieve positive economic benefits. However, some companies have proven ready to transform some production in the United States.

The CEO of the billionaire company said at the annual meeting of the company in April that France -based LVMH, which is based in France, includes its commercial signs Tiffany & Co, Luis Vuitton, Christian Dior, Mott and Chandon, transfer some production to the United States.

Arnault, who attended Trump’s inauguration, urged Europe to reach an agreement based on mutual concessions.

“If we end up with high tariffs, … we will have to increase our US -based production to avoid tariffs,” said Arnol. “If Europe fails to intelligently negotiate, this will be the result of many companies … it will be a Brussels error, if it is about it.”

“The road can be rocky”

Some predictions indicate that the American economy will be more at risk if negotiations fail.

Without an agreement, the European Union will lose 0.3 per cent of its local result, and the US GDP will decrease by 0.7 percent, if Trump slapped the goods imported from Europe with a tariff ranging from 10 percent to 25 percent, according to a research review by Bruziel, a research tank in Brussels.

Given the complexity of some issues, the two sides may only reach a framework deal before the deadline on Wednesday. This is likely to leave a 10 percent base tariff, as well as a tariff for cars, steel and aluminum in place until the details of an official commercial agreement are eliminated.

“The United States will agree to the deals in which its worst threats to” revenge “tariffs exceeding 10 percent.” “However, the road to get there can be rock.”

The United States, which provides exemptions for some goods, may enjoy the way to the deal. The European Union can reduce some of the regulations that the White House views as commercial barriers.

“Although Trump may be able to sell such a result as a” victory “for him, the final victims of the emancipations, of course, will often be American consumers,” said Schmiding.