The European Union officially endorsed the first round of retaliatory tariffs on US products, between 10 and 25 percent, in retaliation for Washington’s new duties on steel and aluminum imports. The new tariffs, endorsed on Wednesday by the member states, will take effect next week.
As reported by the European Commission, some of the targeted American products are jeans and motorcycles. However, US whiskey and other alcoholic drinks were eventually omitted from the agreed list.
Brussels has also drawn up a phased retaliation plan, with further tariffs coming in mid-May and the beginning of the year. Subsequent rounds will cover a wider list of American farm exports, such as beef, poultry, and citrus products such as oranges and grapefruit. Tariffs on products like soybeans and nuts are planned for early December.
The Commission estimates that US tariffs affect about €26 billion (US$28.8 billion) of European exports. In retaliation, the EU’s measures will hit about €21 billion in US goods, internal sources said.
Even with the rapid countermeasure, EU officials have stressed that their preference is still diplomatic talks over ratcheting up the trade war. “Our aim is to settle this by way of dialogue, not confrontation,” a European Commission spokesperson said.
The new step follows US President Donald Trump’s wider tariff policy to address trade imbalances and promote domestic production. Trump has recently announced further tariffs on EU automobiles and other products, leading the Commission to start drafting a parallel package of retaliatory measures.
As each side digs in, the transatlantic trade disagreement seems further from resolution than ever, and economic ripple effects may soon start being felt by industries and consumers alike on either side of the Atlantic.