The Impact of Trump's Universal Tariff on the EU

The Trump Tariffs are still on. The Universal Tariff is proposed at 10% on all US imports.

Should this come to pass, we could be looking at some interesting impacts for Europe. Here’s some quick research on how this 10% universal tariff could impact Europe.

Here's what we cover

• Macro

• Market Impact

• Best Case Scenario

• Closing Thoughts

According to Eurostat, the EU exported EUR 502B to the United States in 2023. The US was the largest partner for EU exports of goods (19.7%) and the second largest partner for EU imports of goods (13.7%).

Among EU Member States, the Netherlands was the largest importer of goods from the United States and Germany was the largest exporter of goods to the United States in 2023. Germany exported EUR 157.7B to the US.

Macro

A universal tariff of 10% could reduce exports by about 1/3rd by many measures, potentially lowering Eurozone GDP by 1.5% as a direct impact.

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