BRUSSELS: European Union countries will seek to present a united front in the coming days against US President Donald Trump’s tariffs, likely approving a first set of targeted countermeasures on up to US$28 billion of US imports from dental floss to diamonds.
Such a move would mean the EU joining China and Canada in imposing retaliatory tariffs on the United States in an early escalation of what some fear will become a global trade war, making goods more expensive for billions of consumers and pushing economies around the world into recession.
The 27-nation bloc faces 25 percent import tariffs on steel and aluminium and cars and “reciprocal” tariffs of 20 percent from Wednesday (Apr 9) for almost all other goods.
Trump’s tariffs cover some 70 percent of the EU’s exports to the United States, worth in total US$585 billion last year, with likely duties on copper, pharmaceuticals, semiconductors and timber still to come.
The European Commission, which coordinates EU trade policy, will propose to members late on Monday a list of US products to hit with extra duties in response to Trump’s steel and aluminium tariffs rather than the broader reciprocal levies.
It is set to include US meat, cereals, wine, wood and clothing as well as chewing gum, dental floss, vacuum cleaners and toilet paper.
One product that has received more attention and exposed discord in the bloc is bourbon. The Commission has earmarked a 50 percent tariff, prompting Trump to threaten a 200 percent counter-tariff on EU alcoholic drinks if the bloc goes ahead.
Wine exporters France and Italy have both expressed concern. The EU, whose economy is heavily reliant on free trade, is keen to make sure it has wide backing for any response so as to keep the pressure up on Trump ultimately to enter negotiations.
