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The European Union will begin imposing retaliatory tariffs on U.S. products next week in response to President Donald Trump's sweeping trade measures, joining other global powers in escalating a trade conflict.
The European Union will launch its first countermeasures against U.S. President Donald Trump's tariffs next week, the bloc's members agreed on Wednesday, joining China and Canada in retaliating and escalating a global trade conflict.
The approval came on the day that Trump's "reciprocal" tariffs on the EU and dozens of countries took effect, including massive 104% duties on China, extending his tariff onslaught and spurring more widespread selling across financial markets.
The 27-nation bloc faces 25% import tariffs on steel and aluminium and cars as well as the new broader tariffs of 20% for almost all other goods under Trump's policy to hit countries he says impose high barriers to U.S. imports.
The European Union will put in place duties mostly of 25% on a range of U.S. imports from next Tuesday in response specifically to the U.S. metals tariffs. The bloc is still assessing how to respond to the car and broader levies.
The U.S. imports include maize, wheat, barley, rice, motorcycles, poultry, fruit, wood, clothing and dental floss, according to a document seen by Reuters. They totalled 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 U.S. tariffs.
They are to enter force in stages - on April 15, May 16 and a final stage on almonds and soy beans on December 1.
"These countermeasures can be suspended at any time, should the US agree to a fair and balanced negotiated outcome," the European Commission said in a statement.
A committee of trade experts from the EU's 27 countries voted on Wednesday afternoon on the Commission's proposal. EU diplomats said that 26 EU members had voted in favour, with only Hungary against.
The result of the vote was widely expected given the Commission has already canvassed EU members and refined an initial list from mid-March, removing U.S. 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% tariff if the EU went ahead with its planned 50% duty on bourbon.
Trump has already responded to Beijing's counter-tariffs announced last week, nearly doubling duties on Chinese imports. In response to that, China said it would impose 84% tariffs on U.S. goods from Thursday.
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