EU LESS EXPOSED
The 27 countries of the European Union are less exposed, as only a “small fraction” of targeted products are exported to the United States, according to Germany’s Kiel Institute.
The EU’s counter-measures, due to take effect next month, would target up to US$28 billion worth of US goods like dental floss, diamonds, bathrobes and bourbon – which likewise account for a small portion of the giant EU-US commercial relationship. Still, the liquor industry warned they would be “devastating” on its sector.
Nevertheless, Commission President Ursula von der Leyen said the bloc will resume talks with US officials.
“It is not in our common interest to burden our economies with such tariffs,” she said.
At the White House, Trump said he would “of course” respond with further tariffs if the EU followed through on its plan.
With Irish Prime Minister Micheal Martin at his side, Trump criticised the EU member country for luring away US pharmaceutical companies.
China’s foreign ministry said Beijing would safeguard its interests, while Japan’s Chief Cabinet Secretary Yoshimasa Hayashi said the move could have a major impact on US-Japan economic ties.
Close US allies Britain and Australia criticised the blanket tariffs, but ruled out immediate tit-for-tat duties.
Brazil, the No 2 provider of steel to the United States, said it would not immediately retaliate.
