Transatlantic tariff dispute risks €8.27 trillion trade ties
The tariff conflict threatens transatlantic business valued at €8.27 trillion annually, warned the European branch of the American Chamber of Commerce in a report titled "The Transatlantic Economy 2025," published on Monday.
According to the Chamber, whose members include Visa, ExxonMobil, and Apple, the tariff dispute jeopardises the world's largest trading relationship, Reuters reported. They recalled that last week the US administration imposed tariffs on steel and aluminium imports, to which the EU responded with a similar measure.
The Chamber noted that trade is only part of the transatlantic exchange, and the real point of reference is investments.
According to Daniel Hamilton, the author of the report, as quoted by Reuters, the majority of American and European foreign investments do not go to emerging markets, but rather to the US and the EU, contrary to the often-repeated claim.
Side effects
Hamilton warned that the side effects of the trade conflict will not be limited to trade itself but will spread to all other areas. He believes the tariff war risks spreading to trade in services, data, or energy because Europe is dependent on LNG imports from the US.
American President Donald Trump justified the start of the tariff war based on the surplus of European goods exported to the United States. However, there is simultaneously a surplus of American services exports to the EU, reminded Reuters.
