The EU Threatens New Tariffs on US Products Worth €95 Billion
EU readies counter-trade measures in case US negotiation breakdown
In a bold move, the European Commission has announced potential tariffs on various US goods, including Boeing, bourbon whiskey, and agrifood products. This step is a response to ongoing trade disputes and the imposition of US tariffs on EU aluminium, steel, cars, and other imports.
Ursula von der Leyen, the Commission's President, stated that while good deals could be made for benefits on both sides of the Atlantic, the EU continues to prepare for all eventualities. tiff negotiations between the two sides have been unfruitful, and the EU is now exploring options to rebalance the trade relationship.
The US imports currently cover 70% of EU exports, a figure that could rise to 97% if further US investigations into pharmaceuticals, semiconductors, and other products result in more tariffs. The list of US goods targeted by the EU will be open to consultation until June 10, before the member states approve it, and possible restrictions on certain EU exports of steel scrap and chemical products to the US worth €4.4 billion could also be implemented.
The tariff rates for these products have not been specified yet, but they could range from 10% to potentially higher percentages depending on the negotiations. It's important to note that US services are not currently threatened by these countermeasures, but all options are on the table if negotiations with the US fail.
A public consultation on imposing tariffs on US imports worth approximately €95 billion is now open. This comprehensive range of industrial and agricultural products underscores the EU's strategic approach to address the trade imbalance with the US.
The discussion between top EU officials and their US counterparts in Washington in early June appeared to produce no tangible results, highlighting the growing tension between the two sides.
Additional Reads:
- Bank of England cuts main interest rate as US tariffs threaten growth
- US free market think tank slams Trump tariffs with trade index
- US imports hit record high as businesses seek to avoid tariffs
Key Themes:
- EU Policy
- Trade
- European Commission
- Tariffs
- United States
The European Commission's threat of tariffs on US goods is a response to trade disputes and US tariffs on EU exports, signaling a potential rebalancing of the trade relationship between the two parties. Meanwhile, the Bank of England has recently cut its main interest rate due to concerns over US tariffs, indicating a potential impact on global finance and business.
In the realm of politics, the US free market think tank has criticized Trump's tariffs as demonstrated by their trade index. Moreover, US imports to avoid tariffs have reached record highs, highlighting the general-news concerns regarding the ongoing trade tensions.
