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EU-Imposes-Tariffs

EU Imposes Tariffs on $23 Billion of U.S. Goods in Response to Metal Tariffs

04/09/2025
Businesspeople shaking hands, symbolizing a trade agreement or negotiation impacted by increased tariffs. - Supply Chain News

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EU Imposes Tariffs on $23 Billion of U.S. Goods in Response to Metal Tariffs

by Mich M.
04/09/2025
in Tariffs & Duties

The European Union has approved tariffs targeting approximately 21 billion euros ($23.2 billion) worth of U.S. goods as retaliation for the 25% tariffs that President Donald Trump imposed on the bloc’s steel and aluminum exports last month.

On April 9, a majority of the EU’s 27 member states voted in favor of the penalties, which are set to take effect in phases starting in mid-April. The tariffs will affect a range of American products, including soybeans from Louisiana, diamonds, agricultural goods, poultry, and motorcycles, with some of these products from politically significant states.

The European Commission stated that these countermeasures could be suspended if the U.S. agrees to a negotiated settlement. The new tariffs add to the escalating transatlantic trade tensions, with the U.S. also having imposed a 20% tariff on nearly all European exports, along with a 25% duty on cars and certain auto parts. The Trump administration has signaled the possibility of additional tariffs on other goods, including lumber, semiconductor chips, and pharmaceuticals. These measures are affecting approximately 380 billion euros of EU exports.

The EU’s countermeasures will be implemented in stages, with some tariffs taking effect on April 15, others in mid-May, and a final batch starting on December 1. Most of the targeted goods will face a 25% tariff, though some categories will be subjected to a 10% levy.

Bourbon was excluded from the EU’s tariff list following pressure from member states, particularly after the U.S. threatened to impose a 200% tariff on French wine, champagne, and other alcoholic beverages.

President Trump has repeatedly criticized the EU, calling it unfair to the U.S. and accusing it of establishing rules designed to restrict U.S. exports. The U.S. has pointed to the EU’s trade surplus as evidence of an imbalanced relationship. In 2023, the EU’s trade-weighted average tariff rate was 2.7%, according to World Trade Organization data.

The European Commission has also been engaged in discussions with U.S. officials regarding potential areas for negotiation, including tariffs, regulations, and standards. However, meaningful progress in these talks has yet to materialize, with U.S. officials not yet receiving clear directives from the Trump administration on how to proceed.

The EU has expressed its willingness to negotiate a resolution to the tariff dispute but remains prepared to take further retaliatory measures if necessary. This ongoing conflict dates back to 2018 when the U.S. first imposed tariffs on European steel and aluminum, citing national security concerns. The EU responded with retaliatory tariffs on American products, including motorcycles, apparel, and agricultural goods.

In 2021, the U.S. and the EU reached a temporary truce, with the U.S. partially lifting tariffs and introducing a tariff-rate quota system for metals, while the EU froze its retaliatory measures. However, the latest round of tariffs has reignited tensions between the two sides.

Stay updated with supply chain logistics news on The Supply Chain Report. Free international trade tools are available at ADAMftd.com.

#EUtariffs #USTariffs #TradeDispute #GlobalTrade #USandEU #TariffWar #TradePolicies #EuropeanUnion #EconomicSanctions #USTradePolicy

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