U.S.-Europe Tariffs Jeopardize $9.5 Trillion in Trade

The U.S.-Europe tariff dispute threatens $9.5 trillion in transatlantic business, the American Chamber of Commerce (AmCham) warned on Monday.

AmCham EU, which includes major companies like Apple, ExxonMobil, and Visa, highlighted in its annual Transatlantic Economy report that U.S.-EU trade reached record levels in 2024, with $2 trillion in goods and services exchanged. However, 2025 presents both opportunities and risks for the world’s largest trade relationship.

In the past week, Washington imposed tariffs on steel and aluminum, the EU announced retaliatory measures, and President Donald Trump threatened a 200% tariff on European wine and spirits.

Trump is Ready to Impose Tariffs on Key Sectors

Trump criticized the U.S. trade deficit with the EU in goods while ignoring the American surplus in services. He urged manufacturers to relocate production to the U.S. However, AmCham emphasized that trade is only part of the equation, with investment being the real driver of transatlantic business.

“Contrary to popular belief, most U.S. and European investments go into each other’s markets rather than lower-cost emerging economies,” AmCham noted.

U.S. subsidiaries in Europe generate four times the revenue of U.S. exports to the region, while European subsidiaries in the U.S. generate three times the revenue of European exports. AmCham warned that escalating trade tensions could disrupt these deep economic ties.

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.

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