In a concerning development for European trade, U.S. President Donald Trump's investigations into various sectors, including pharmaceuticals, raw materials, and semiconductors, could significantly impact EU exports to the United States. EU trade chief Maroš Šefčovič revealed that these probes, coupled with existing tariffs, are projected to affect a staggering €549 billion worth of EU exports—representing 97 percent of the total EU exports to the U.S.
Šefčovič addressed European lawmakers in Strasbourg, emphasizing the potential economic consequences of the ongoing investigations. “If all these inquiries culminate in unjustified and harmful tariffs, an additional €170 billion of EU exports to the U.S. would be at risk,” he stated. This would amplify the total impact to approximately €549 billion, underscoring the gravity of the situation for European industries.
The U.S. administration has initiated investigations targeting key areas such as lumber, pharmaceuticals, semiconductors, critical minerals, and trucks, as part of a broader strategy to “reshore” production within the United States. Šefčovič noted that Trump's existing tariffs—including a 20 percent "reciprocal" tariff on the EU and a 25 percent tariff on cars, car parts, steel, and aluminum—are already projected to affect around €380 billion of EU goods, equating to 70 percent of the bloc's exports to the U.S.
In the past year, the U.S. collected approximately €7 billion in duties on EU exports, but this figure could escalate to as much as €100 billion if the ongoing investigations lead to new tariffs, according to Šefčovič's estimates.
As the July 8 deadline approaches, the European Commission is seeking to leverage a temporary pause to negotiate the tariffs imposed by Trump. While the EU has thus far avoided the 20 percent levy, a baseline universal tariff of 10 percent remains in effect.
In an effort to address these challenges, the Commission's chief trade official, Sabine Weyand, is spearheading a delegation of high-level technical experts for negotiations in Washington, D.C., on Tuesday and Wednesday. This meeting marks the first direct engagement between Brussels and Washington since the Commission outlined its retaliation strategy last week.
