TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
EU countries set to approve first retaliation against US tariffs
The approval will come on the day that Trump's "reciprocal" tariffs on the EU and dozens of countries took effect, including massive 104 percent duties on China, extending his tariff onslaught and spurring more widespread selling across financial markets.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
European Union flags flutter on the day European Central Bank (ECB) President Christine Lagarde speaks to reporters following the Governing Council's monetary policy meeting in Frankfurt, Germany, on Sept. 12, 2024. (Reuters/Jana Rodenbusch)
E
uropean Union countries are expected to approve on Wednesday the bloc's first countermeasures against US President Donald Trump's tariffs, joining China and Canada in retaliating and escalating a conflict that could become a global trade war.
The approval will come on the day that Trump's "reciprocal" tariffs on the EU and dozens of countries took effect, including massive 104 percent duties on China, extending his tariff onslaught and spurring more widespread selling across financial markets.
The 27-nation bloc faces 25 percent import tariffs on steel and aluminum and cars as well as the new broader tariffs of 20 percent for almost all other goods under Trump's policy to hit countries he says impose high barriers to US imports.
The European Commission, which coordinates EU trade policy, proposed on Monday extra duties mostly of 25 percent on a range of US imports in response specifically to the US metals tariffs. It is still assessing how to respond to the car and broader levies.
The imports include motorcycles, poultry, fruit, wood, clothing and dental floss, according to a document seen by Reuters. They totaled about 21 billion euros ($23 billion) last year, meaning the EU's retaliation will be against goods worth less than the 26 billion euros of EU metals exports hit by US tariffs.
They are to enter force in stages - on April 15, May 16 and December 1.
A committee of trade experts from the EU's 27 countries will vote on Wednesday afternoon on the Commission's proposal, which will only be blocked if a "qualified majority" of 15 EU members representing 65 percent of the EU population vote against.
That is an unlikely event given the Commission has already canvassed EU members and refined an initial list from mid-March, removing US dairy and alcoholic drinks.
Major wine exporters France and Italy had expressed concern after Trump threatened to hit EU wine and spirits with a 200 percent tariff if the EU went ahead with its planned 50 percent duty on bourbon.
Trump has already responded to Beijing's counter-tariffs announced last week, nearly doubling duties on Chinese imports. China has vowed to "fight to the end".
