Oddbean

EU's $47bn trade surplus over U.S. is a new record high—expect it to get bigger ========== The EU's trade surplus with the U.S. reached a record high of €43.6 billion ($47.3 billion) in the first quarter of 2024, reflecting an increase in exports to the U.S. and a reduction in imports to the EU. This surge is attributed to the rising costs of trading with China due to the U.S.-China trade war, making European imports more attractive. On the other hand, lower EU demand for American goods is likely due to economic challenges in Europe, such as declining manufacturing and sanctions cutting off access to cheap Russian oil and gas. The EU is also experiencing a trade deficit with China, and there are concerns of a potential trade war over alleged state subsidies for manufacturing. Despite these challenges, the trend of closer trade ties between the U.S. and Europe is expected to continue, benefiting the EU. The EU is expected to follow the U.S. in placing tariffs on Chinese EVs, but at a lower level. Overall, the EU's trade surplus with the U.S. is expected to grow even larger. #Eu #Us #TradeSurplus #ChinaTariffs #TradeWar https://fortune.com/europe/2024/05/22/eus-trade-surplus-over-usa-surges-record-47-billion-china-tariffs-going-up-get-even-bigger/