EU Trade Chief Says Projections Of $100B Outflow From Trump Tariffs Is 'Not Acceptable'

The European Union’s top trade negotiator reportedly said that if U.S. President Donald Trump moves forward with broader tariffs, including on sectors such as pharmaceuticals, it could collect more than $100 billion in taxes from European imports.

“The situation as such is not acceptable, and we cannot afford to stay idle,” said Maros Sefcovic, the European commissioner for trade, according to the Wall Street Journal.

According to the report, Sefcovic spoke at a debate in France and said that if all potential duties were implemented, around 549 billion euros ($621.28 billion) of EU exports to the U.S. could face tariffs.

“The projection is that the U.S. might now collect as much as 100 billion euros,” he said.

The Trump administration hit the EU with a 20% tariff rate in April, which was paused for 90 days to allow for negotiations.

The EU had also planned retaliatory tariffs in response, but stopped them from coming into effect to create a framework for a trade deal.

However, a 10% import tariff remains on all exports to the U.S. alongside sector-specific tariffs on steel, aluminum, and cars.

Sefcovic reportedly said he is in constant touch with his counterparts across the Atlantic to work on a deal and avoid further tariffs.

However, the trade chief added that officials are still preparing for a scenario where a deal cannot be reached.

EU officials are also preparing for litigation and monitoring the risk of oversupply of cheap goods from non-tariff countries, Sefcovic said.

According to the Office of the United States Trade Representative, the U.S. goods trade deficit with the European Union rose 12.9% to $235.6 billion in 2024.

The SPDR EURO Stoxx 50 ETF has gained 19.5% year to date compared with a 4.5% fall in the S&P 500 index.

Also See: US And China Set Up First Talks Since Trump's Tariffs Mayhem, Signal Possible Truce In Trade War

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