European Union countries will, on Wednesday, approve the bloc's first countermeasures against U.S. President Donald Trump's tariffs, joining China and Canada in retaliating and escalating a conflict that could become a global trade war.
This will come on the day that Trump's “reciprocal” tariffs on the EU and dozens of countries take effect, including massive 104% duties on China, extending his tariff onslaught and spurring more widespread selling across financial markets.
DAILY POST reports that the 27-nation bloc faces 25% import tariffs on steel and aluminum and cars, as well as new broader tariffs of 20% on almost all other goods under Trump's policy to hit countries he says impose high barriers to U.S. imports.
On Monday, the European Commission, which coordinates EU trade policy, proposed extra duties, mostly of 25%, on a range of U.S. imports in response specifically to the U.S. metals tariffs.
The imports were said to include motorcycles, poultry, fruit, wood, clothing, and dental floss.
They totaled about 21 billion euros ($23 billion) last year, meaning the EU's retaliation will be against goods worth less than the 26 billion euros of EU metals exports hit by U.S. tariffs.
They are reportedly set to enter force in stages—on April 15, May 16, and December 1.
A committee of trade experts from the EU's 27 countries will vote on Wednesday afternoon on the Commission's proposal, which will only be blocked if a “qualified majority” of 15 EU members representing 65% of the EU population votes against.
Major wine exporters France and Italy had expressed concern after Trump threatened to hit EU wine and spirits with a 200% tariff if the EU went ahead with its planned 50% duty on bourbon.
Trump has already responded to Beijing's counter-tariffs announced last week, nearly doubling duties on Chinese imports. China has vowed to “fight to the end.”
