EU Imposes Retaliatory Tariffs on US Goods Amid Trade Tensions

The European Union just took a very audacious step in its ongoing trade dispute with the United States. They have authorized a new round of retaliatory tariffs. On Tuesday, EU member states unanimously agreed to impose a 25% tariff on a broad range of American products, escalating tensions between the two economic powers. So we still don’t know the final list of targeted US products. This ruling has direct implications for the tariffs that the Trump administration imposed on EU goods in 2018.

Those tariffs would have a huge impact on the American exports covered by those tariffs. These range from almonds, orange juice, and poultry to steel, aluminum, tobacco, and even yachts. By taking this decision, the EU is signalling that it will not shy away from defending its interests against emerging trade barriers. These tariffs will hit about 70% of EU exports to the US. This inspiring personal story illustrates the very real impacts on transatlantic trade.

Only Hungary ended up siding with the EU’s remit against the retaliatory measures. This resistance underlines the seriousness of Europe’s disunion on how to react to this exploding trade conflict. The EU is working on a second package of retaliation that would increase the damage.

This new twist follows the Trump administration’s imposition of customs duties on EU automobiles. In retaliation, the EU slapped reciprocal tariffs on all products imported from the U.S. The never-ending trade tussle had raised tempers on both sides, forcing a reset by both players.

Olof Gill, the European Commission’s trade spokesperson, stated, “They [EU tariffs] can be suspended at any time should US agree to a fair & balanced negotiated outcome.” This statement is a sign of the EU’s readiness to negotiate, respond and settle these trade battles peacefully.

As the EU and the US make their way through this complicated landscape, the future of transatlantic trade relations is unclear. The risk of renewed escalation hangs heavy in the air should talks fail to produce acceptable outcomes for both Israel and the PA.