EU Set to Impose €93 Billion Tariffs on US Goods in Trade Dispute
The European Union is set to impose tariffs on American goods worth €93 billion, retaliating against the US's 50% duties on European steel. This move comes after a qualified majority of EU member states, including Germany and France, supported the activation of a new anti-coercion instrument to counter economic pressure from the United States.
The EU's response, approved by member states, will roll out in stages. The first phase begins on 7 August, with additional measures following in September and February. These tariffs will mirror the US's in scale and sectoral coverage, reaching up to 30% on a wide range of American goods.
The EU continues to seek a negotiated solution with the US, aiming for a deal similar to the US-Japan agreement. A potential compromise would see the US apply a 15% tariff across key European sectors, not in addition to existing baseline tariffs. However, the US has shown no sign of willingness to reduce its current duties.
All EU member states, except Hungary, have declared their support for the anti-coercion instrument. President von der Leyen's 2025 State of the Union Address highlighted the formation of a 'Coalition of the Willing' comprising 26 countries. Germany and France, following a meeting between their leaders, have joined forces to support the activation of this legal mechanism.
If no agreement is reached, the EU will proceed with the first stage of its counter-tariffs from 7 August. The EU's actions aim to deter economic pressure from third countries and maintain a level playing field in global trade.
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