EU trade surplus with US at record high

THE EU’s trade surplus with the US reached a record level last year, data showed on Friday, increasing the risk that US President Donald Trump’s anger could reignite a trade war.

Trump is a furious critic of Europe’s high trade surpluses, accusing the EU – and especially Germany – of unfair practices against US workers, much like he does with China.

Last year, his government imposed punitive tariffs on steel and aluminium from Europe and other partners, and this was met with countermeasures by the EU, including duties on US motorcycles and denim jeans.

Last year, the EU trade surplus with the US reached € 139.7 billion ($157.812 billion), € 20.1 billion more than in 2017, according to the EU’s Eurostat data agency.

The new data lands as the US Department of Commerce is reported to have found that auto imports into the US threaten national security, the first step toward possible auto tariffs by Washington.

Major risk

The report is expected to be delivered to the White House by a Sunday deadline and has been seen as a major risk for EU automakers.

Trump would have 90 days to decide on taking the measures, with the latest surplus data likely to weigh in his decision.

“I like tariffs”, Trump told reporters at press conference on Washington on Friday, saying they are bringing “many billions of dollars pouring into our Treasury”.

Despite the tense situation, exports of goods from the 28 EU states last year reached € 406.4 billion according to Eurostat. This was an increase of eight per cent compared to the previous year.

Imports from the US also increased to a total of € 266.7 billion, but the increase was significantly lower, which is why the EU trade surplus climbed to the fresh record.

A spokesman for the European Commission did not want to speculate about the consequences for the ongoing trade talks with Washington.

“I won’t i nter pret a ny f igures . . . but trade relations are much more t ha n t rade surpluses or trade def icits,” t he spokesman said.

The EU Commission has been seek i ng to def use t he dispute with Trump through a “limited” trade agreement wit h t he US a nd EU foreign trade ministers will discuss a negot iat i ng ma ndate nex t week.