EU members are set to adopt the bloc’s first countermeasures to U.S President Donald Trump’s tariffs on Wednesday, joining China and Canada in retaliating and intensifying a battle that might lead to a global trade war.
The clearance will come on the same day that Trump’s “reciprocal” tariffs on the EU and dozens of other countries went into force, including huge 104% penalties on China, expanding his tariff onslaught and sparking more widespread selling in financial markets.
The 27-nation union faces 25% import tariffs on steel, aluminium, and automobiles, as well as new broader duties of 20% on practically all other items, as part of Trump’s agenda to punish countries that he claims create significant barriers to American imports.
In reaction to the US metals tariffs, the European Commission, which oversees EU trade policy, recommended further charges on Monday, primarily of 25%, on a variety of US products.
It is currently determining how to react to the vehicle and more general levies.
According to reports, the imports include dental floss, motorcycles, chickens, fruit, timber, and apparel. They totalled about €21bn (R454.99bn) last year, meaning the EU’s retaliation will be against goods worth less than the €26bn (R563.32bn) of EU metals exports hit by US tariffs.
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 vote 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”.
