That the European Union (EU) would retaliate against United States (U.S.) tariffs was expected; the only question was when. As the European Commission announced in its statement on Wednesday, the EU will impose retaliatory tariffs next month on U.S. goods worth 26 billion euros (28 billion dollars). However, despite the announced tariffs, which indicate that the global trade war initiated by the U.S. with its general tariffs on steel and aluminum is not subsiding but rather intensifying, Europe is not closing the door to negotiations. Instead, it emphasizes that it remains open to talks and believes that higher tariffs are in no one’s interest.
New tariffs are in no one’s interest
“We firmly believe that in a world full of geoeconomic and political uncertainties, it is not in our shared interest to burden our economies with such tariffs. We are ready to engage in meaningful dialogue,” said European Commission President Ursula von der Leyen.
Until negotiations take place and an agreement is reached, the European Commission will reimpose tariffs on certain U.S.products, which had been temporarily suspended. As of April 1st, the suspension of temporarily halted tariffs on certain U.S.products will end, and the European Commission’s tariffs will be fully in effect until April 13th.
The increased tariffs of 25 percent imposed by U.S. President Donald Trump on all steel and aluminum imports took effect on Wednesday after previous exemptions, duty-free quotas, and product exclusions expired.
“The countermeasures we are taking today are strong but proportionate. As the U.S. applies tariffs worth 28 billion dollars, we are responding with countermeasures worth 26 billion euros,” European Commission President Ursula von der Leyen told reporters on Wednesday, adding that the EU must act to protect its consumers and businesses.
Products covered by the tariffs
The suspended tariffs apply to a wide range of products, from boats and bourbon to motorcycles. However, the list does not end there, as the EU will add other product categories after two weeks of consultations. The proposed targeted products include industrial and agricultural goods such as steel and aluminum, textiles, household appliances, plastic, poultry, beef, eggs, dairy products, sugar, and vegetables.
The new measures will target about 18 billion euros worth of goods to ensure that the total value of the EU’s measures corresponds to the increased trade volume affected by the new U.S. tariffs.
“In the meantime, we will always remain open to negotiations,” von der Leyen said, Forbes writes.
