US Vice-Pres. JD Vance and European Commission (EC) Pres. Ursula von der Leyen met in Paris on Tuesday following the AI Action Summit, where — according to a press release — they discussed trade relations, security partnerships, and technological cooperation.
According to the US Census Bureau, 2024 saw nearly $342B in goods exported to the EU compared to just below $556B in imports, meaning a net of -$214B. In 2023, US-EU relations accounted for nearly 30% of global goods and services trade and represented 43% of global gross domestic product (GDP).
The Trump admin. has announced this month the restoration of a 25% tariff on steel imports and increased aluminum tariffs to 25%, citing national security concerns and the need to protect domestic industries. Trump has also recently stated that EU tariffs were to be imposed "very soon," and that the European bloc had "really taken advantage" of the US.
JD Vance has represented US interests from a position of strength during his European tour. While Europe scrambles for a response, it's clear that US tariffs would correct the imbalance in trade relations. EU leaders, divided on their approach, struggle to counter Washington's decisive policies. By enforcing tariffs, the US can hold Europe accountable for unfair practices, pushing them to the negotiating table and securing better terms for American workers and industries.
America's aggressive tariff threats against the EU risk backfiring, as Europe can take a smarter, more strategic approach. By strengthening ties with countries like Canada, the EU can counterbalance US unpredictability and reduce reliance on US tech giants. Europe can limit access to its digital economy, which would significantly impact US firms that dominate this space. Despite America's bully tactics, Europe can protect its interests and maintain stability in the global market.