The US tariff for European commodities threatens consumers on both sides of the Atlantic Ocean

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.

President Trump said on social media this weekend that he would start sending A tariff for increasing letters To countries that the United States does not reach satisfactory commercial deals that start at noon on Monday. Japan and South Korea They were the first beneficiariesWith the sending of messages from the Trump administration to Japanese Prime Minister Shigro Ishiba and South Korean President Lee Jay Meong on Monday indicates that the customs tariff by 25 % on their countries will enter into force on August 1.

Trump imposed a 20 % 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 ease of the nation’s duties, put it in waiting until July 9 at a record rate of 10 % for quiet financial markets and providing 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 %, which may make everything – from French cheese and Italian leather goods to German electronics and Spanish drugs – much 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 Beesen told the “CNN” program “The European Union” that “the European Union was very slow to come to the table” but the talks 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 “most important” commercial relationship

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 trade and the United States in goods and services amounted to 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.

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 dollars), which represents less than 3 % of the total trade of the United States of America.

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 of 1.47 % for European commodities, while the average goods in the European Union reached 1.35 % for American products.

A less convenient position towards a long -term ally

But the White House has taken a lower friendly position towards the US ally for a long time since February. Along with the volatile tariff rate on European goods launched by Trump, the European Union is subject to a 50 % tariff for steel and aluminum, and a 25 % tax on cars 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 % to 27 %. 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 related to regulations, consumer standards and taxes, the European Union and its members cannot give many reasons,” said Holgar Schmiding, chief economist at Burnberg Bank in Germany. “They cannot change the way they manage the wide internal 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 works.”

American consumers may be hurt more

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.

Mercedes -Benz merchants in the United States said they kept the line in 2025 prices “until further notice.” The German auto industry has a partial introductory shield because it makes 35 % of Mercedes -Benz vehicles sold in the United States in Tusciaosa, Alabama, but the company said it expects prices to be subjected to “large 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 production in the United States to avoid definitions,” said Arnolt. “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.”

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 % of its total local outcomes, and the US GDP will decrease 0.7 %, if Trump slapped the goods imported from Europe with a tariff from 10 % to 25 %, according to the research review by Brugel, 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 % 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 exceed 10 %.” “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.