Trade relations between the U.S. and the European Union (EU) hit another rough patch a number of years ago. Former President Donald Trump and his administration threatened to impose additional duties on EU exports worth $11 billion in retaliation to the bloc granting aircraft manufacturer Airbus illegal subsidies.
The World Trade Organization (WTO) ruled that the subsidies had an adverse impact on the U.S. by causing Airbus rival Boeing Co. (BA) to lose sales and that the bloc failed to comply with rulings, paving the way for the U.S. to impose countermeasures. In 2019, the U.S. was awarded $7.5 billion as compensation. In 2020, the EU was authorized to impose tariffs of $4 billion due to illegal subsidies by the U.S. government to Boeing.
The list of EU products covered by additional duties included aircrafts, helicopters and fuselages from France, Germany, Spain or the U.K., in addition to a variety of cheeses, fruits, jams, wines and yarns from any of the 28 member States of the bloc.
In July, former President Trump met with European Commission President Jean-Claude Juncker at the White House to improve trade relations after Trump had said he will impose a 20% retaliatory tariff on car imports from the EU. The two regions are expected to discuss a new trade deal that removes tariffs on non-auto industrial goods.
The EU is one of America’s largest trading partners, accounting for $658 billion worth of goods trade in 2020. While the U.S. exported $237.9 billion worth of goods from the EU, the imports stood at $420.1 billion, making the deficit $182.1 billion, the highest on record according to the Census Bureau.
Top Imports From EU
The top of the list for imports from across the Atlantic Ocean is pharmaceuticals. In 2019, the U.S. pharma imports from EU stood at $77 billion.
Machinery, excluding electrical and computer equipment, was the second-largest component of EU imports for the U.S. at $75.6 billion in 2019. This category includes agricultural and industrial machinery as well as engines and turbines.
Motor vehicle-related imports at nearly $44 billion and accounted for 9.7% of all goods imports from the EU that year. This category includes cars, motor vehicle bodies and trailers and car parts.
Top Exports to the EU
In 2019, United States’ largest export to the EU was aerospace products and parts at $35.7 billion. That was followed by mineral fuels, worth $28.9 billion, and machinery worth $26.4 billion.
Top State Trade
In terms of the exports of goods, in 2020, Texas ranked highest in terms of the export of goods to the EU at $37.9 billion, followed by California at $30.0.3 billion. South Carolina, Illinois and Georgia came next in line with trade volumes of $9.6 billion, $8.8 billion and $8.7 billion respectively. Wyoming, Montana and Hawaii are states that saw the lowest trade of goods with the EU that year.