Now the European Commission has released a much more detailed list of 1,680 product codes. This step is in major part their retaliation to the United States’ implementation of new tariffs. This first-of-its-kind initiative grew out of a unique, joint EU–Member State and industry stakeholder consultation process. The list intentionally focuses on commodities that do the least damage to the European economy. It responds to the increasing trade tensions between the two regions.
The tariffs counter the recently approved 20% tariffs on European exports to the U.S. The US just put those tariffs into effect last week. The European Commission did not throw this list together. They wanted to prevent any retaliatory action that would punish their own economy the hardest. Those yet-to-be-announced tariffs can go up to 25%. These tariffs will take effect between April 15 and December 1, and are in addition to the US’s imposition of 25% tariffs on imported aluminum and steel that started on March 12th.
The European Commission is aggressively working to ensure that EU Member States. They are implementing a new second wave of retaliatory measures, targeting specifically the US tariffs on cars. The Commission has taken a more nuanced approach in this second reply. It seeks to calibrate its moves to outmaneuver the expected, focused retaliation by the US aimed at specific EU industries.
That list of products is meant to reflect what officials call a “careful mix.” You are trained to quickly respond to the latest round of US tariffs. Further still, you can look forward to likely retaliatory moves from the US administration. The Commission is acutely aware of the complexities of the situation. First and foremost, it doesn’t like new retaliatory measures and it is taking steps right now to publicly call for de-escalating trade relations.
The European Commission is hopeful regarding further progressing negotiations under the auspices of the current US administration. Their goal is to find a solution that works for everyone involved. EU Member States are scheduled to vote as a bloc on this list Wednesday afternoon. This vote is a significant step toward solidifying the EU’s position on how to engage in future and ongoing trade disputes.
With the nation divided and emotions inflamed, there’s increased urgency on both sides to bridge the divide. What has transpired thus far highlights the very fraught nature of international trade negotiations and the catastrophic effects that can result from hasty tariff impositions.
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