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U.S.-EU Tariff Conflict Threatens $9.5 Trillion Transatlantic Trade

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    Posted by Two Blokes Mar 17 - Filed in General - #TwoBlokesTrading  - 9 views

    The ongoing tariff conflict between the U.S. and European Union is putting transatlantic trade and investment — valued at $9.5 trillion annually — at significant risk, according to the American Chamber of Commerce to the EU (AmCham EU).

    Key Highlights of the U.S.-EU Trade Dispute

    1. Tariff Escalation

      • The U.S. recently imposed tariffs on steel and aluminium imports from Europe.
      • In response, the EU has outlined retaliation plans.
      • Donald Trump further escalated tensions by threatening 200% tariffs on EU wine and spirits.

    2. Trade and Investment Impact

      • AmCham EU’s Transatlantic Economy Report reveals that U.S.-EU trade in goods and services hit $2 trillion in 2024.
      • Despite growing trade concerns, AmCham emphasized that investment is the true foundation of the transatlantic economy.
      • U.S. foreign affiliate sales in Europe are 4x higher than U.S. exports to the region, while European affiliate sales in the U.S. are 3x greater than European exports.

    3. Potential Spillover Risks

      • The conflict could expand beyond trade to affect:
        • Services trade
        • Data flows
        • Energy markets (particularly Europe’s reliance on U.S. LNG imports).

    4. Industry-Specific Risks

      • Ireland and Germany are especially vulnerable, as intra-firm trade accounts for 90% and 60% of their respective trade volumes.

    Investment Insights with FMP APIs

    To monitor the impact of the U.S.-EU tariff conflict on global markets, investors can leverage the following FMP APIs:

    \u2705 Economic Indicators API — Track GDP trends, trade balances, and inflation for both the U.S. and EU economies.
    \u2705 Forex API — Monitor currency fluctuations, especially the EUR/USD pair, which may respond sharply to trade developments.
    \u2705 Market Performance API — Analyze sector-specific performance, particularly energy, metals, and consumer goods industries affected by tariffs.

    Conclusion

    The escalating U.S.-EU tariff conflict has the potential to disrupt not just trade but also investment, data, and energy flows. Investors should stay informed using real-time data via FMP APIs to track economic shifts and market reactions. Maintaining vigilance on key sectors vulnerable to tariff policies will be crucial in navigating the volatile landscape ahead.