Washington, D.C. – President Donald Trump escalated trade tensions on Monday by declaring the European Union “nastier than China” during a press conference at the White House, criticizing Europe over trade imbalances and health care costs.
Why it matters:
The EU is the United States’ largest trading partner, with nearly $1 trillion in trade annually. U.S. exports to the EU more than double those sent to China, making any standoff with Europe economically significant.
What happened:
Trump unveiled a new executive order aimed at reducing prescription drug prices in the U.S., and used the occasion to slam the EU for what he described as unfair economic practices.
“The U.S. has been subsidizing Europeans’ health care for too long,” Trump said. “It’s time they paid more. The rest of the world is going to have to pay a little bit more — and America is going to pay a lot less.”
He claimed U.S. pharmaceutical companies would not suffer under the changes, calling it a “redistribution of wealth.”
By the numbers:
Trump alleged the EU sells 13 million cars to the U.S. annually while the U.S. sells almost none in return. However, data from the European Automobile Manufacturers Association shows the actual figures are closer to 750,000 EU cars shipped to the U.S., compared to 170,000 U.S. cars exported to Europe.
What to watch:
The EU has responded cautiously. Rather than retaliating immediately like China did during Trump’s previous trade disputes, the bloc has launched a month-long public review of a proposed $100 billion tariff list. Further negotiations will follow, with potential implementation in mid-summer.
Axios’ take:
Trump’s aggressive tone may strain already fragile U.S.-EU relations. His administration’s skepticism toward traditional alliances continues to shape America’s foreign and economic policies — even as tech companies and pharmaceutical firms brace for fallout.