EU’s total exports to the US last year totalled about €500 billion (US$567 billion), with Germany (€161 billion euros), Ireland (€72 billion ) and Italy (€65 billion) the three largest exporters.
Pharmaceuticals, cars and auto parts, chemicals and aircraft were among the largest exports, according to EU data.
“The EU is one of Trump’s least favourite regions, and he does not seem to have good relations with its leaders, which increases the chance of a prolonged trade war between the two,” said Kathleen Brooks, research director at XTB.
Export-oriented car companies in Europe, most notably Germany’s major automakers, are heavily exposed, with few near-term options other than smaller discounts and price increases.
Porsche and Volkswagen’s Audi have no US production. Some, including Audi and Volvo Cars, have already said they will move some production.
Volvo Cars CEO Hakan Samuelsson told Reuters on Friday that customers would have to pay a large part of tariff-related cost increases, and that it could become impossible to import the smallest cars in the company’s line-up to the United States.
But he remained hopeful that Europe and the US would soon come to an agreement.
“I believe there will be a deal soon. It could not be in the interest of Europe or the US to shut down trade between them,” Samuelsson said.
