EU-US Trade War May Impact Transatlantic Economy

The American Chamber of Commerce to the European Union (AmCham EU) on Monday warned that the deteriorating trade ties between the US and the EU member states may impact the transatlantic economy, which is estimated to be $9.5 trillion in 2024, up from $8.7 trillion the previous year.

A new study entitled “Transatlantic Economy 2025,” which was authored Daniel Hamilton, Senior Fellow at the Foreign Policy Institute of Johns Hopkins University’s Paul H. Nitze School of Advanced International Studies, and Joseph Quinlan, Senior Fellow at the Transatlantic Leadership Network, showed that this comprised an estimated record $2 trillion in goods and services trade between Europe and the US and $7.5 trillion in combined affiliate sales.

The, AmCham EU and the US Chamber of Commerce, features the latest insights on jobs, trade and investment between Europe and the US. The 2025 edition of the study presents record-breaking figures across multiple fronts.

The Europe-US goods trade is valued around $1.3 trillion while the EU-US goods trade stood at $976 stood billion. Likewise, the US services exports to the EU was estimated to be $275 billion, and the US affiliate sales in Europe is said to be $4 trillion and the European affiliate sales in the US were estimated to be of $3.5 trillion.

Coming to energy partnership, the US share of Europe’s LNG supplies reached 48%; while Europe’s share of US LNG global exports hit 55%. 

Despite this strong performance between the wo regions, the study highlighted a range of risks for 2025, including uneven growth rates between Europe and the US, competitive pressures from China and the prospect of a transatlantic trade war. 

Protect Trade Ties

AMCham EU CEO Malte Lohan stressed the need to safeguard transatlantic economic ties.

“The study’s findings demonstrate the importance of economic ties between Europe and the US – and the risk of letting the relationship deteriorate. For companies on both sides, the transatlantic economy is more than just a source of profit. It is a common geo-economic base that gives them an edge in a fiercely competitive world,” he said.

Commenting on the prospect of continued transatlantic trade disputes, he also said that leaders on both sides of the Atlantic now have a window of opportunity.

“Rather than engaging in a tit-for-tat that only hurts the two economies, they should come to the negotiating table to work out what a positive deal for the transatlantic economy looks like. The numbers show that it is in both sides’ interests,” he added.