The EU has agreed to impose retaliatory tariffs on €21bn (£18bn) of US goods, targeting farm produce and products from Republican states, in Europe’s first act of retaliation against Donald Trump’s tariffs.
The EU plans to introduce 25% tariffs on scores of goods from almonds to yachts, with the first duties being collected from 15 April, while the bulk apply from 15 May and the remainder from 1 December.
In a statement confirming the favourable vote by EU member states, the European Commission said: “The EU considers US tariffs unjustified and damaging, causing economic harm to both sides, as well as the global economy.”
The tariffs include US soya beans, grown abundantly in Louisiana, the home state of the House of Representatives speaker, Mike Johnson.
Ahead of the vote, analysis of the leaked list of customs codes by Politico found that EU duties would hit up to $13.5bn (£10.6bn) worth of exports from red states, including beef from Kansas and Nebraska, cigarettes from Florida and wood products from North Carolina, Georgia and Alabama.
The EU is facing calls to target US tech firms or banks in future retaliation, a potent but politically explosive target, as the US runs a €109bn (£94bn) trade surplus with the EU in service industries.
The outlook for negotiations is uncertain, amid questions over whether Trump’s goal is to create leverage over other countries – suggesting tariffs could be rolled back – or to raise revenues and reindustrialise the US, which points to their longevity.
There is an interesting back and forth though I guess. Say from the American point of view you have almonds. EU is like tax them so people won’t want them here. But all the Americans are like damn, why euro almonds so expensive. And they’ll stick to us almonds. I guess theoretically the real winner will be the environment with less shipping containers being sent everywhere…but that also seems unlikely at this point. The spice must flow
You’d be right if everything is grown and made everywhere. And there are plenty of luxury goods where it would be better if people didn’t make a big deal out of it like with french champagne and Italian marble. It is also weird with clothing, the US and EU have plenty of fashion companies that could theoretically make a profit even if only selling in their home market. But where ever the brand is from, most clothing is made outside of US and EU. Why? The cost of labour. And you’ll need some very high import duties if you want to counter them low wages.