EU to Impose Tariffs on US Products in Response to US Tariffs
Brussels is expected to adjust its counter-tariffs on new US tariffs on EU products this week. The planned EU tariffs on US goods are set to take effect in mid-April, a Reuters report said on Sunday. The move is a response to the comprehensive new tariffs the United States has imposed.
US President Donald Trump announced a minimum tariff of 10 percent on all EU imports, in addition to “reciprocal” tariffs against dozens of countries he accuses of unfair trade imbalances with the United States. EU exports were hit even harder, with a rate of 20 percent. Trump stated that many countries, including the EU, take advantage of the US through “harmful measures like currency manipulation and exorbitant value-added taxes.”
The EU’s planned counter-tariffs, according to Reuters, will affect US products worth up to $28 billion. The list includes meat, grains, wine, wood, clothing, chewing gum, toothpaste, vacuum cleaners and toilet paper. A product that has drawn special attention is American bourbon whiskey, which the European Commission has slapped with a 50 percent tariff. In response, Trump threatened a 200 percent tariff on European alcoholic beverages.
The main goal of the meeting on Monday is to “present a unified message, namely the wish to negotiate the lifting of the tariffs with Washington, but also the readiness to react with counter-measures if that does not work” said EU diplomats, citing Reuters.
Despite differing views among member states – France pushes for an expansion of the measures, Ireland calls for a “measured” reaction and Italy questions retaliatory measures – the bloc is determined to maintain unity.
Diplomats said the vote on the tariffs is set for April 9. If an unexpected qualified majority does not oppose it, the tariffs on US imports will be decided on the same day. The tariffs will then take effect in two stages: the first tariffs will come into force on April 15 and the rest a month later. According to Reuters, an EU diplomat said, “Our greatest fear after Brexit were bilateral agreements and a break in unity, but that did not happen in the three or four years of negotiations. Of course, this is a different story, but everyone can recognize an interest in a common trade policy.”
In the United States, tens of thousands of left-wing activists took to the streets on Saturday to protest against the tariffs and other measures of the Trump administration. According to the organizers of the “Hands off!” protests, over 1,400 rallies took place in state capitals in front of federal buildings, town halls and parks.
After Trump’s announcement of new tariffs, JPMorgan increased its estimate of the likelihood of a global recession from 40 percent to 60 percent. The bank’s chief economist, Bruce Kasman, said, “It is expected that the effects of this tax increase will be further amplified by factors such as retaliatory measures, a deterioration in the US economy’s mood and disruptions in the supply chain.