US, EU Tariff Disputes Escalate

(MENAFN) The longstanding trade relationship between the United States and the European Union could be severely disrupted as Washington prepares to enforce new tariffs beginning August 1.

Without a negotiated resolution, this move threatens to freeze commercial exchanges between the two economic powers.

As per statistics provided by the EU Commission, the US and the EU are engaged in the most substantial bilateral trade partnership globally, valued at over 1.5 trillion euros (approximately $1.7 trillion).

These two regions are each other’s leading partners across goods, services, and investment sectors.

In terms of merchandise, the EU exported goods worth $623.7 billion to the US last year. Conversely, American goods exported to the EU amounted to $392.9 billion.

This trade flow highlights a $231.5 billion surplus in favor of the EU.

Regarding services, the balance swings the other way. In 2023, EU member states purchased $501.3 billion worth of services from the US, while exporting only $373.9 billion in return.

This imbalance resulted in a US-oriented services surplus of $127.4 billion.

President Donald Trump has voiced strong concerns over the EU's advantage in goods trading.

Meanwhile, EU officials have underscored America’s lead in service exports, creating a persistent deadlock in trade discussions.

The combined direct investments between both sides amount to $2.7 trillion, illustrating the depth of their economic ties.

Trump's administration initiated several tariffs affecting the EU and other global partners, beginning with a 25% duty on steel and aluminum that took effect in March 2025.

This was followed by a similar 25% tariff targeting the automotive sector—an industry in which the EU holds a dominant position.

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