EU Prepares $28 Billion Response to Trump Tariffs
The European Union will try to present a united front against US President Donald Trump's tariffs and is likely to approve the first round of countermeasures on imports of US goods worth up to $28 billion, Reuters reports.
The European Commission, which is responsible for coordinating the EU's trade policy, plans to present to member states late on Monday a list of US goods that will be subject to additional duties in response to the US tariffs on steel and aluminium imposed by the Trump administration. At the same time, these measures will not apply to other ‘reciprocal’ duties.
The proposed list will include goods such as meat, cereals, wine, wood, clothing, as well as chewing gum, dental floss, vacuum cleaners and toilet paper.
According to EU diplomats, the main purpose of the meeting of foreign ministers in Luxembourg on Monday is ‘to formulate a unified position on the desire to reach an agreement with Washington on the cancellation of duties, but at the same time to demonstrate readiness for retaliatory measures if this fails.’
However, there are disagreements among member states on how to respond to Trump's tariffs. France, for example, insists on the need to develop a broader package of actions that goes beyond customs policy. President Emmanuel Macron has called on European companies to temporarily suspend investments in the US until the situation is clarified.
At the same time, Ireland, which accounts for about a third of exports to the US, called for a restrained response. Italy, the third largest exporter to the US among the EU countries, doubts whether it is advisable for the EU to take retaliatory measures at all.
As The Gaze reported, on 2 April, US President Donald Trump officially announced the start of a trade war with all countries of the world simultaneously, announcing tariffs of 10% to 50% on imports to the US depending on the country of origin.
The US government imposes a base tariff of 10%, with additional duties on specific countries. In particular, for China - at 34%, the European Union - 20%, Japan - 24%, India - 26%, South Korea - 25%, the UK - 10%, Israel - 17%.