EU Imposes Counter Tariffs on US Goods Amid Trade Tensions
The European Union responds with tariffs worth €26 billion against the US as new American steel and aluminum tariffs come into effect.
Brussels – The European Union has announced immediate countermeasures in response to the recently imposed United States tariffs on steel and aluminum.
Beginning April 1, the EU will impose tariffs on American goods valued at up to €26 billion.
EU Commission President Ursula von der Leyen described the retaliatory measures as "strong and proportionate," while also expressing an openness to negotiations with the US administration.
The European Commission expressed its deep regret over the US's decision, which it believes risks escalating tensions into a trade war.
On February 10, the Biden administration unveiled an increase in tariffs on imports of steel and aluminum from the EU, raising them from 10% to 25%.
Despite multiple appeals from European leaders, US officials have not signaled a commitment to reach a negotiated resolution.
As of March 12, the tariffs initially imposed by the Trump administration in 2018 on various steel and aluminum products will be reinstated, affecting products including steel pipes, wire, and tin foil, as well as derivative items such as household goods, cookware, and machinery.
The tariffs are projected to impact €26 billion of EU exports, representing roughly 5% of European goods entering the US market.
According to estimates from the European Commission, US importers may incur costs of up to €6 billion as a direct result of these protective measures.
Von der Leyen emphasized the adverse effects of tariffs on both businesses and consumers, reiterating that they are effectively taxes that can harm economies.
The EU has devised a two-pronged strategy to respond to the situation.
From April 1, it plans to reinstate previous tariffs on goods including boats, motorcycles, and certain liquors, which aim to counterbalance the economic damage inflicted by the US tariffs on €8 billion worth of EU steel and aluminum exports.
In addition, a new tariff package on US products is planned for implementation in mid-April, targeting approximately €18 billion worth of goods.
This second round will include industrial items, such as textiles, plastics, and home appliances, as well as agricultural products like poultry, beef, seafood, and dairy.
Brussels intends to finalize consultations regarding the new tariff list by March 26, aiming for swift adoption by member states, with implementation expected shortly thereafter.
EU sources indicate that the tariff package is meticulously structured to impact sectors critical to the US economy while minimizing fallout for EU member states.
The EU's approach appears to target goods crucial to states with Republican majorities, while also ensuring market alternatives exist.
For instance, the EU has indicated a willingness to source soybeans from Brazil to mitigate reliance on US suppliers.
Simultaneously, the EU remains receptive to dialogue with the US administration, stating that the announced tariffs can be lifted should an agreement be reached.
Von der Leyen reaffirmed the belief that the imposition of tariffs is not conducive to shared economic interests amid existing geopolitical uncertainties, assigning Maroš Šefčovič to facilitate negotiations aimed at finding mutually beneficial solutions.
Beginning April 1, the EU will impose tariffs on American goods valued at up to €26 billion.
EU Commission President Ursula von der Leyen described the retaliatory measures as "strong and proportionate," while also expressing an openness to negotiations with the US administration.
The European Commission expressed its deep regret over the US's decision, which it believes risks escalating tensions into a trade war.
On February 10, the Biden administration unveiled an increase in tariffs on imports of steel and aluminum from the EU, raising them from 10% to 25%.
Despite multiple appeals from European leaders, US officials have not signaled a commitment to reach a negotiated resolution.
As of March 12, the tariffs initially imposed by the Trump administration in 2018 on various steel and aluminum products will be reinstated, affecting products including steel pipes, wire, and tin foil, as well as derivative items such as household goods, cookware, and machinery.
The tariffs are projected to impact €26 billion of EU exports, representing roughly 5% of European goods entering the US market.
According to estimates from the European Commission, US importers may incur costs of up to €6 billion as a direct result of these protective measures.
Von der Leyen emphasized the adverse effects of tariffs on both businesses and consumers, reiterating that they are effectively taxes that can harm economies.
The EU has devised a two-pronged strategy to respond to the situation.
From April 1, it plans to reinstate previous tariffs on goods including boats, motorcycles, and certain liquors, which aim to counterbalance the economic damage inflicted by the US tariffs on €8 billion worth of EU steel and aluminum exports.
In addition, a new tariff package on US products is planned for implementation in mid-April, targeting approximately €18 billion worth of goods.
This second round will include industrial items, such as textiles, plastics, and home appliances, as well as agricultural products like poultry, beef, seafood, and dairy.
Brussels intends to finalize consultations regarding the new tariff list by March 26, aiming for swift adoption by member states, with implementation expected shortly thereafter.
EU sources indicate that the tariff package is meticulously structured to impact sectors critical to the US economy while minimizing fallout for EU member states.
The EU's approach appears to target goods crucial to states with Republican majorities, while also ensuring market alternatives exist.
For instance, the EU has indicated a willingness to source soybeans from Brazil to mitigate reliance on US suppliers.
Simultaneously, the EU remains receptive to dialogue with the US administration, stating that the announced tariffs can be lifted should an agreement be reached.
Von der Leyen reaffirmed the belief that the imposition of tariffs is not conducive to shared economic interests amid existing geopolitical uncertainties, assigning Maroš Šefčovič to facilitate negotiations aimed at finding mutually beneficial solutions.
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