Bruegel: U.S. Tariffs on the EU Could Persist for Up to 20 Years

American tariffs on the EU could endure for as long as 20 years. While these tariffs are economically detrimental, they hold political appeal, requiring no tax hikes, which makes them potentially viable even under Democratic administrations, as highlighted by an analysis from the Bruegel think tank.

Experts estimate that the duration of these tariffs may range from 7 to 20 years, indicating a bleak outlook. Supporters argue that despite their economic drawbacks, tariffs are politically favorable. The current Democratic administration appears reluctant to eliminate them, as shown by President Joe Biden’s decision not to roll back the lower tariffs established during Donald Trump’s presidency.

The elimination of tariffs, they argue, is unlikely to occur without a comprehensive reform of the global trading system through the World Trade Organization, which seems improbable given the present circumstances.

Additionally, tariffs provide government revenue without necessitating formal tax increases, rendering them appealing in a highly divided political landscape in the U.S. The adverse economic repercussions—such as increased inflation or sluggish growth—are often not fully understood by the public and do not prioritize voters’ concerns, thus bolstering their political viability.

Conversely, more optimistic forecasts suggest that tariffs could be in place for a shorter period of 2 to 5 years. Critics highlight the economic inefficiencies of tariffs and their potential to exacerbate stagflation in the U.S., predicting a 0.5 percent slowdown in GDP growth between 2025 and 2026 while maintaining inflation above the Federal Reserve’s target. Additionally, the historical precedent of high tariffs set by Trump points to their politically driven nature.

Those advocating for a shorter duration of tariffs note that the revenue generated, projected at around $300 billion this year, represents only 0.7 percent of GDP, indicating that any potential losses could be offset through other means. The negative impact on consumers and businesses also limits the tariffs’ long-term sustainability in a democracy. Abolishing tariffs could offer Democrats a clear way to differentiate themselves from the former administration’s policies.

Experts point out that, following months of uncertainty over the Trump administration’s tariff decisions on imports, international trade has largely stabilized. Currently, imports from the European Union are subjected to a customs tariff of up to 15 percent, with discussions now centering more on the duration of the tariffs rather than on ways to avoid or lessen them. (27.08.2025)


Comments

9 responses to “Bruegel: U.S. Tariffs on the EU Could Persist for Up to 20 Years”

  1. riff raff Avatar
    riff raff

    Oh, fantastic! Nothing screams “forward-thinking economy” like holding onto tariffs for two decades. Who needs innovation when you can just keep milking the same tired cash cow, right? 😏💸

  2. Grinch Cheese Avatar
    Grinch Cheese

    Looks like the U.S. is playing a long game of “who can annoy their trading partner the most” with these tariffs—20 years? I mean, who doesn’t love a good family feud stretched over two decades? 😂

  3. 20 years of tariffs? Brilliant! Just what we need to spice up the already thrilling game of international trade – a never-ending soap opera! 🎭💸

  4. Tootsie Killer Avatar
    Tootsie Killer

    Oh, brilliant! Who wouldn’t want a little bit of tariff chaos to spice up the next two decades? Just what we need—more paperwork and price hikes to keep things interesting! 🤦‍♂️💼

  5. Most Wanted Avatar
    Most Wanted

    Tariffs lasting 20 years? Brilliant! Who needs a stable economy when you can have a never-ending political soap opera that keeps the voters guessing? 😂💼

  6. widow curio Avatar
    widow curio

    20 years of tariffs, eh? Just what we need—an economic rollercoaster that lasts longer than the average European vacation! 🎢💸

  7. Stallion Patton Avatar
    Stallion Patton

    Seems like the U.S. is all set for a long-term love affair with tariffs—who needs amicable trade relations when you can have a political soap opera? 🥴

  8. Looks like we’ve found the American version of a long-term relationship—20 years of tariffs without that pesky commitment to actual economic sense! It’s like choosing to pay for a flat in London but still living in mum’s basement. 😂

  9. easy sweep Avatar
    easy sweep

    Sure, nothing says “let’s play nice” in global trade like a two-decade-long game of tariff tag. Must be a great way to boost the economy—if you enjoy watching it slowly deflate like an old football! 😂

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