The European Union announced March 11 a two-pronged retaliatory response to the 25 percent tariffs the U.S. imposed on imports of steel and aluminum and derivative products as of March 12. These measures will not take effect for several weeks, and EU officials said they are “ready to negotiate” with the U.S. during that time.
According to information from the European Commission, the first step will be to reinstate tariffs as of April 1 on €4.5 billion worth of imports from the U.S. These tariffs, which had been suspended during President Trump’s first term will cover “products ranging from boats to bourbon to motorbikes” (see here and here for affected goods).
In the second step the EU plans to have in place by mid-April tariffs on another €18 billion worth of imports from the U.S. The Commission said proposed target products (a full list can be downloaded here) include industrial products such as steel and aluminum products, textiles, leather goods, home appliances, house tools, plastics, and wood products as well as agricultural products such as poultry, beef, seafood, nuts, eggs, dairy, sugar, and vegetables.
However, the EU will first consult with stakeholders through March 26 to “ensure that the right products are chosen for inclusion in the new countermeasures.” The Commission will then use comments received to finalize a proposal to adopt specific countermeasures, which will be followed by consultations with EU member states. The Commission aims to have a legal act imposing countermeasures in place by mid-April.
According to press reports, other major trading partners like the United Kingdom, Japan, South Korea, Australia, and Brazil have so far declined to pursue retaliatory measures of their own. China pledged to take “all necessary measures” but gave no further details.
For more information on these tariffs please check this page or contact ST&R at tariffs@strtrade.com.
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