EU and US Trade Tensions Escalate with Imposed Tariffs

Trade tensions between the European Union and the United States have intensified, with both sides imposing tariffs on each other's goods. The EU has announced tariffs on US products worth €26 billion in response to the 25% tariffs imposed by the US on steel and aluminum. Cecilia Malmström, former EU Trade Commissioner, described this exchange as an escalating conflict where no one wins. She noted that consumers and ordinary people would be most affected due to rising prices, impacting inflation, employment, and economic growth. The EU has expressed strong opposition to tariffs, with European Commission President Ursula von der Leyen stating that higher tariffs disrupt supply chains, create economic uncertainty, and threaten jobs. The trade relationship between the EU and the US is valued at €1.6 trillion in 2023. While the EU acknowledges a deficit in services trade with the US, it maintains that the overall trade relationship is balanced.