Trade Deficit between U.S and EU rose 11% after Trump’s Decision

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The U.S trade surplus with the European Union in the first half of the year rose at least 11% when compared to the past year. Trump has complained regarding the EU’s trade surplus with the U.S as it has risen under his watch. Bloomberg reported that 10-years ago, the trade deficit of America with the E.U was just 18.7 billion Euros. It was 75 billion Euros or 83 billion U.S dollars in the first half of 2019. The figures illuminate the tension between the president’s rhetoric on trade and long-running U.S trends. The U.S has operated at a global deficit for more than 40 years, in spite of Trump’s focus on trade deficits.

The gap between the number of products the exported to and imported from, the EU has significantly widened in recent years. Trump is currently looking to diminish the U.S trade deficit with China. It is a major factor motivating tensions between Washington and Beijing. The total American goods trade deficit rose. Exports to China decreased more than the imports did in the first half of 2019. Trump has railed against EU trading policies as part of his protectionist measures. He claimed they are unfair to the U.S. He has previously threatened to impose tariffs on imports of cars assembled in EU, a move that would create a hefty financial burden for European automobile companies.

This kind of decision could particularly affect Germany, which sold 31 billion U.S dollars of cars and parts to the U.S last year. The United States imported 125.9 billion U.S dollars of goods from the country while exporting 57.7 billion U.S dollars leaving the U.S with a sizable trade deficit. The criticism of Europe from Trump has infused tension into military and trade alliances between the U.S and some of its longstanding allies. He has claimed that the EU treats the U.S worse on trade than China does and again railed against European nations at a Thursday night campaign rally in New Hampshire.