The European Union (EU) may put new tariffs on up to €100 billion ($150 billion) worth of American goods. This move is meant to respond to possible tariffs from Donald Trump, if he returns to power. According to Bloomberg, the EU Commission might officially announce this plan later this week.
Why Is the EU Considering Tariffs?
The EU wants to protect its industries from US trade actions. In 2023, the EU had a trade surplus of €48 billion with the US. This means the EU sold more to the US than it bought. Most of this surplus came from goods like cars, machines, and other products.
Goods trade: EU exported €503.8B to the US but imported only €347.2B — a surplus of €156.6B.
Services trade: EU imported €427.3B in services from the US but exported only €318.7B — a deficit of €108.6B.
Overall trade balance: €48B surplus in 2023.
What Happens Next?
If current trade talks between the US and EU fail, the EU may move ahead with the tariff plan. The goal is to prepare for any new tariffs the US might place, especially under Trump, who has hinted at raising trade barriers.
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