EU-U.S. Trade Tensions

The U.S. administration is moving forward with broad tariffs, including a 10% tariff on Chinese imports and a newly announced 25% tariff on U.S. steel and aluminum imports, which directly target the EU. In response, the EU has vowed to impose tough countermeasures. While the 25% tariffs on Canada and Mexico are currently paused, the uncertainty around these trade measures continues to create a volatile environment for global markets and the ongoing tensions have sparked concerns from the global business community. 

This recent escalation threatens to destabilize the transatlantic economy and impact global supply chains, with companies on both sides of the Atlantic likely to feel the consequences. The American Chamber of Commerce in Sweden opposes the proposed tariffs, and shares concerns over the potential substantial damage they could cause. Additionally, these tariffs fail to address the wider issue of global unfair trading practices. 

The administration's planned review of U.S. trade policy should take into account the root causes behind trade imbalances while consulting the parties most likely to be affected and respecting the rules of the international trading system.

At a time of global instability and uncertainty, the U.S. and the EU should work together to address common trade and security challenges by working toward a pragmatic transatlantic agenda.