The European Union, led by European Commission President Ursula von der Leyen, has announced that it will impose counter-tariffs on US goods worth 26 billion euros (28 billion dollars) from next April, according to a statement from Brussels on Wednesday. Washington had previously ordered that increased tariffs of 25 percent would come into effect on March 12 for all steel and aluminum imports from EU countries, as earlier exceptions, duty-free quotas and product exclusions had expired.
According to the Brussels statement, the details of the US tariffs on affected EU products are as follows:
“The US measures introduced on March 12 consist of three key elements:
The reintroduction of Section 232 tariffs on steel and aluminum products from June 2018, which affected various types of semi-finished and finished products, such as steel pipes, wire and tin foil.
The increase of tariffs on aluminum from the original 10 percent to 25 percent.
The extension of tariffs to other products, particularly to steel and aluminum products, such as household items like cookware or window frames, as well as products that only partially consist of steel or aluminum, like machines, sports equipment, certain electrical appliances, or furniture.”
According to the EU Commission, the new US tariffs of 25 percent will affect EU exports worth 26 billion euros, which is approximately five percent of the total value of EU exports to the US.
Brussels has announced that the Commission has launched a “rapid and proportionate reaction” to protect European interests by introducing “two counter-measures.” These consist of the reintroduction of the previously suspended measures for 2018 and 2020, as well as the imposition of a new package of additional measures.
In the first step, it will be about US goods worth around 8 billion euros and in the second step, it will be about goods worth around 16 billion euros. The Frankfurt Allgemeine Zeitung (F.A.Z.) reports on the plans from Brussels:
“As the responsible European Commission announced in the morning, the EU’s extra tariffs on the import of American products such as bourbon whiskey, jeans, motorcycles, boats and peanut butter will become due from April on.”
According to the press release, Brussels is “still willing to work with the US government to find a negotiated solution.” Von der Leyen stated in the statement from today:
“The trade relationships between the European Union and the United States are the most important in the world. They have brought prosperity and security to millions of people and trade has created millions of jobs on both sides of the Atlantic. Since this morning, the United States has imposed a 25 percent tariff on imports of steel and aluminum. We deeply regret this measure. Tariffs are taxes. They are bad for the economy and even worse for consumers.”
And further:
“The counter-measures we are taking today are hard, but proportionate. Since the US is imposing tariffs worth 28 billion dollars, we are reacting with counter-measures worth 26 billion euros, which corresponds to the economic volume of the US tariffs.
The EU measures will begin on April 1 and will be fully in effect from April 13. If a corresponding ‘solution’ is found, the measures can be ‘reversed at any time.’