EU Trade Chief Calls $100B Outflow Due to Trump Tariffs "Unacceptable"

The chief trade negotiator for the European Union allegedly stated that if U.S. President Donald Trump proceeds with wider tariff implementations, particularly targeting industries like pharmaceuticals, this action has the potential to generate over $100 billion in tax revenue from goods imported from Europe.

"The current circumstances are unacceptable, and we can’t afford to remain inactive," stated Maros Sefcovic, the European Commissioner for Trade, as reported by The Wall Street Journal.

The report states that during a discussion in France, Sefcovic mentioned that should all possible duties be enforced, approximately 549 billion euros ($621.28 billion) worth of European Union exports to the United States might be subject to tariffs.

“He projected that the U.S. could potentially gather up to 100 billion euros.”

In April, the Trump administration imposed a 20% tariff rate on imports from the EU, but this measure was temporarily halted for 90 days to facilitate negotiation efforts.

The EU had also planned retaliatory tariffs in response, but stopped them from coming into effect to create a framework for a trade deal.

Nevertheless, a 10% import duty persists on all goods exported to the U.S., along with specific tariffs targeting sectors such as steel, aluminum, and automobiles.

Sefcovic reportedly said he is in constant touch with his counterparts across the Atlantic to work on a deal and avoid further tariffs.

Nevertheless, the head of trade negotiations mentioned that officials are still getting ready for a situation where an agreement may not be achieved.

Sefcovic mentioned that EU officials are likewise getting ready for potential legal battles and keeping an eye on the risk of an influx of inexpensive products from nations without tariffs.

According to the Office of the United States Trade Representative, the U.S. goods trade deficit with the European Union rose 12.9% to $235.6 billion in 2024.

The SPDR EURO Stoxx 50 ETF has gained 19.5% year to date compared with a 4.5% fall in the S&P 500 index.

Also See: US And China Set Up First Talks Since Trump's Tariffs Mayhem, Signal Possible Truce In Trade War

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