Rising Tensions in Transatlantic Trade
In 2025, tensions in the trade war between the USA and Europe have dramatically escalated. High tariffs on central products, including Boeing airplanes and iPhones, have been threatened and partially implemented. US President Donald Trump has imposed tariffs of up to 50 percent starting June 1, 2025, to correct trade imbalances and support domestic production.
Reactions from Europe
In response to the protectionist measures of the USA, the EU has introduced retaliatory tariffs of 10 to 25 percent on selected US products such as jeans, motorcycles, and whiskey. Further countermeasures, such as tariffs on cars and agricultural products, are in preparation.
Economic Impacts
- Global Supply Chains: The tariffs disrupt established supply chains, affecting companies like Boeing and Apple, leading to higher production and sales costs.
- Financial Strain: Penalty tariffs result in rising production costs, potentially squeezing margins and hindering investments.
- Market Uncertainty: The trade dispute creates nervousness in the stock markets and burdens global economic growth.
The US government justifies the measures by claiming national security, which the EU views as contrary to WTO rules. Trump also pursues fiscal goals by using tariff revenues to fund campaign promises.
Further International Tensions
In addition to Europe, the tariff dispute with China remains unresolved. Although there have been temporary reductions in tariff rates, the situation remains unstable.
Overall, the trade war between the USA and Europe is on a knife’s edge. Further escalation could disrupt global supply chains and heavily burden companies.