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109 Europe Trade war - Edition May 2018 - Crédit Agricole S.A.
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  • Edition May 2018

    Europe – Foreign trade – Trade war: the price to be paid

    The announcements concerning the Trump administration's trade policy present a serious challenge for the European Union. If it fails to bring the US back to the WTO's negotiating table, the European Union could either enter into bilateral negotiations, or lodge a complaint with the WTO in order to obtain compensation. Both options carry a cost, be it having to renounce multilateralism, or face an escalation of the trade conflict with the US.

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  • Contents:

    - The why and how of the US sanctions
    - The weight of the European Union in the US trade deficit
    - What strategy can Europe adopt?

  • Extract – What weight do European vehicles have in US imports?

    European automobile imports to the US have up to now been spared additional trade barriers, despite the threats made. However, these threats constitute a much greater risk for European trade, in particular for Germany. Thus, 25% of vehicles imported by the US (which represents $43bn) comes from the EU, vs. 26% from Canada, 23% from Japan and only 1% from China. Germany alone accounts for almost 13% of US vehicle imports, followed by the UK, with 5.2%, and Italy (2.4%).

  • US trade deficit with EU

    The European Union is the United States' number two trade partner, and accounts for over 102 billion dollars in the US trade deficit, far behind China ($337bn), out of a total deficit of around 567 billion dollars (3.3% of GDP) in 2017.

    US trade deficit with EU
  • Associative topics : Economics | Europe | North America

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