BRUSSELS, April 6 (Reuters) – The European Union (EU) is preparing to present a unified response to U.S. President Donald Trump’s tariffs, with plans to approve targeted countermeasures on up to $28 billion of U.S. imports, which could range from dental floss to diamonds. This move marks the EU’s first official response in what could escalate into a global trade dispute, following similar retaliatory actions from China and Canada. There are concerns that this conflict may lead to higher prices for consumers globally and risk pushing economies into a recession.
The 27-nation bloc faces significant tariffs from the U.S., including 25% duties on steel and aluminum, as well as tariffs on cars, which will increase to 20% starting Wednesday. These tariffs affect approximately 70% of the EU’s exports to the U.S., which totaled 532 billion euros ($585 billion) last year. Products such as copper, pharmaceuticals, semiconductors, and timber may also be subjected to additional tariffs in the future.
The European Commission, which oversees EU trade policy, is set to propose a list of U.S. products for additional tariffs, in response to the U.S. steel and aluminum measures. This list is expected to include items such as meat, cereals, wine, wood, clothing, and household goods like vacuum cleaners and toilet paper. A proposed 50% tariff on U.S. bourbon has sparked tensions, particularly with U.S. President Trump, who has threatened to impose a 200% counter-tariff on European alcoholic beverages.
Wine-exporting countries like France and Italy have voiced concerns about the impact of such measures. The EU is working to ensure a cohesive response to the tariffs, aiming for support across the bloc to maintain pressure on the U.S. and push for negotiations. Luxembourg will host a key political meeting on Monday, where EU trade ministers will discuss the situation and strategize the response, with the goal of presenting a unified message and exploring potential negotiations with Washington.
There is a range of views among EU member states regarding the approach to take. France advocates for a more comprehensive strategy beyond tariffs, with President Emmanuel Macron suggesting that European companies suspend investments in the U.S. until clarity is achieved. Conversely, Ireland, with significant exports to the U.S., has called for a balanced and measured approach. Italy, the EU’s third-largest exporter to the U.S., has raised questions about the need for retaliation.
Efforts to engage in talks with Washington have not yielded results so far. EU trade chief Maros Sefcovic described his recent discussions with U.S. counterparts as “frank,” emphasizing that the U.S. tariffs were damaging and unjustified. The EU’s initial countermeasures are expected to be voted on Wednesday and are likely to pass, unless a significant number of member states oppose the measures.
The countermeasures will be implemented in two phases, with the first set of tariffs scheduled to take effect on April 15 and the remainder to follow a month later. European Commission President Ursula von der Leyen will meet with CEOs from the steel, automotive, and pharmaceutical sectors to assess the impact and determine the next steps.
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