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The European Union will begin imposing retaliatory tariffs on U.S. goods next week in response to President Donald Trump’s sweeping steel and aluminium tariffs, escalating a growing transatlantic trade war.
The European Union will launch countermeasures from next Tuesday against U.S. President Donald Trump’s steel and aluminium tariffs with extra duties on 21 billion euros ($23 billion) of U.S. imports.
The 27-nation bloc faces 25% import tariffs on steel, 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 counter-tariffs announced so far are a response specifically to the U.S. metals tariffs imposed on March 12 and were approved by EU members on Wednesday. The bloc is still assessing how to respond to the car and broader "reciprocal" tariffs.
The EU plan comes in three phases, with most of the tariffs not due to take effect until May.
APRIL 15:
The first phase of European tariffs will cover 3.9 billion euros worth of U.S. products, including steel and aluminium, corn (maize), rice, motorcycles, motor boats, dishwashers, washing machines and orange juice.
These are mostly a repeat of tariffs the EU imposed in 2018 when Trump ordered an earlier set of less comprehensive tariffs on European steel and aluminium products. Both sides removed the levies in a truce reached under U.S. President Joe Biden.
Notably, U.S. whiskey is excluded this time, after some countries worried about U.S. retaliation against European wine exports.
Most of the affected products will face 25% tariffs, although some are hit by lower rates such as diamonds at 10%.
MAY 16:
Because the new U.S. metals tariffs cover a much wider range of steel and aluminium goods than the 2018 levies, the commission, which coordinates EU trade policy, drew up a much larger list of U.S. imports for additional retaliation. This originally covered U.S. goods valued at 21 billion euros, but was then pared down to 17 billion euros with the removal of dairy products, spirits and wines.
The additional tariffs of 25% are to be imposed on May 16 on 13.5 billion euros worth of goods, including poultry, beef, fruit, cereals such as wheat, barley and oats, vegetable oils, wood, plastics, carpets, clothing, glassware and tools, as well as chewing gum, dental floss, lawn mowers, vacuum cleaners and toilet paper.
DECEMBER 1: Duties will be added to a further 3.5 billion euros of U.S. goods, including soybeans and almonds.
WHICH COMPANIES COULD BE AFFECTED?
EU officials hope that hitting a wide range of products could make U.S. businesses press Washington to dial back its trade war.
U.S. producers of the affected goods include Whirlpool WHR.N, Stanley Black & Decker SWK.N, Mohawk Industries MHK.N, Harley-Davidson HOG.N, Ralph Lauren RL.N, Tyson Foods TSN.N and Archer-Daniels-Midland ADM.N
($1 = 0.9045 euros)
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