The American Chamber of Commerce to the European Union warned on Monday that the tariff war between the United States and Europe is threatening $9.5 trillion in annual transatlantic business.
The chamber, which has more than 160 members including Apple, ExxonMobil, and Visa, highlighted in its annual Transatlantic Economic Report a close trade relationship that reached record levels in 2024, with trade in goods and services worth $2 trillion.
Opportunities and Risks
The report describes 2025 as a year of both opportunities and risks for the world’s largest trading relationship.
Last week, Washington imposed tariffs on steel and aluminum, and the European Union outlined plans to retaliate. US President Donald Trump threatened to impose 200% tariffs on EU wine and spirits.
Trump criticized the US goods trade deficit with the EU, despite a US surplus in services, and urged manufacturers to produce in America. The U.S. Chamber of Commerce said that trade is only part of transatlantic trade activity, and that the real measure is investment.
The report stated, “Contrary to conventional wisdom, most U.S. and European investment flows to each other, rather than to emerging markets where costs are lower.”
US foreign-owned companies’ sales in Europe are four times higher than U.S. exports to Europe, and European companies’ sales in the United States are three times higher than European exports.
Warning
The U.S. Chamber of Commerce warned that the effects of the trade conflict could damage these close relationships.
Daniel Hamilton, lead author of the report, said that business-to-business trade—which accounts for about 90% of Ireland’s trade and 60% of Germany’s—could be negatively impacted.
There is a risk that the crisis could spill over into trade in services, data flows, or energy, with Europe relying on liquefied natural gas imports from the United States.
Hamilton added, “The ripple effects of conflict in the commercial space will not be limited to trade alone, but will extend to all other areas, and the interactions between them are critical.”
Source: Agencies
