Trump says the EU and the UK are in line for tariffs, but the deal is possible

US President Donald Trump said on Sunday that trade tariffs would be imposed on the European Union and the UK, but indicated that the contract could still be resolved with Britain.

Trump sent global markets in the tail after following her threat to impose import tariffs to the largest trade partners in the United States, applying 25% of imports to imports from Mexico and Canada and 10% of the goods from China. Tariffs will enter into force on Tuesday.

All three countries They slammed the billing. Canada revealed herself with her own sanctions over American imports, and Mexico threatened to do the same. China said she would file a lawsuit with a World Trade Organization.

Asked on Sunday about the appearance of tariff on the goods from the UK and the European Union (EU), Trump said BBC That they both acted “out of order”, but that the EU had behaved worse and that the tariffs could be imposed on the “very quickly” block.

“They don’t take our cars, they don’t take our farm products, they take almost nothing, and we take everything from them. Millions of cars, huge amounts of food and agricultural products,” he commented while he arrived at Maryland. He said he had no time tape to impose tariffs, but that he would come “very quickly”.

As for Britain, with which they now have a tinted trade relationship withThe president said he believes it can still be achieved.

“. He is out of order. But I’m sure, I think he can get elaborated,” Trump said, adding that he “agreed very well” with British Prime Minister Keir Starmer.

The EU is seen as the next one on the Tariff Trump list, given that the largest block for entertainment is a store with the US and has undergone a frequent criticism for its permanent trade excess with the states. European Commission data show That the EU had a trade surplus of 155.8 billion euros ($ 159.6 billion) with the US for goods in 2023, but launched a deficit of 104 billion euros to services.

Machines and vehicles make up the largest piece of EU exports to the USA groups of products, followed by chemicals, other goods produced and medicinal and pharmaceutical products.

Trump described on Sunday by an American trade deficit with the EU as “crime”, repeating his previous comments that the block “really used” his relationship with the USA

EU officials previously suggested that the block could react to US tariffs “In a proportional way”, Given that the European Commission echoed on Sunday that it would “answer firmly”.

“Tariff measures over the ship increase business expenses, harm workers and consumers. Tariffs create unnecessary economic disorders and trigger inflation. They are harmful to all sides,” the commission spokesman said in a statement in a statement.

“At this point, we are not aware that any additional tariffs are imposed on the EU products. Our trade and investment relationship with the US is the largest in the world. It is a lot of in question. We should both look at strengthening this relationship,” added is a commission spokesman.

The latest trade data in the UK Shows that the UK had a trade excess of £ 4.5 billion ($ 5.5 billion) with USA in Rob, in four quarters that ended in the second quarter of 2024.

Economists have previously noticed that a more balanced trade and a “special relationship” between the two countries could enable Britain to escape relatively intact from a potential trade war.

The Labor Government seemed to fly under the radar of Trump’s Tariff wrath, and Finance Minister Rachel Reeves said CNBC at the World Economic Forum in Davos last month The UK was not “part of a” “permanent” trade deficit That Trump wants to get rid of it.

On Monday, a British government spokesman said: “We have a fair and balanced trade relationship that uses both sides of the Atlantic,” in the comments reported by Reuters. CNBC requested a further comment from the Government and awaits an answer.

Tariff threat will be at the center of the discussion when the Starmer joins EU leaders -Au Brussels on Monday talk about the region’s defense strategy. The risk of trade war is likely to be high on the agenda because Britain and the EU seem to deepen economic and political ties five years after the UK left the block.

The odds of tariffs come to the already difficult time for the EU, because both the Euro zone and the wider EU block are fighting economically. Data published last Thursday showed the eurozone economy in the fourth quarterwhile The EU has allocated 0.1% in the same periodfrom the previous quarter.

Strategies in Deutsche Bank on Monday said in research note that all the tariffs that Trump will charge on the EU will apply a “serious blow to the region of the region, emphasizing” if the EU must withstand 10% of tariffs, the analysis of our economists has previously had an analysis of economists before our economists suggested that it would be worth a 0.5-0.9% discount on GDP [gross domestic product] All other things are the same. “

Europe is likely to be affected by some of the capture measures, according to Holger Schmieding, the main economist at Berenberg Bank – but the Bloc might look to make an agreement with Trump of the transaction.

“By raising military consumption and increasing the import of liquid natural gas from the United States, the EU will be able to avoid escalating trade spiral with the US if so, trade tension will refrain, but do not prevent gradual fixing of European growth from the spring on There is barely any growth during the winter, “Schmieding said in the comments of E -after -Monday.