NewsEU retaliates with tariffs on $24B (CAD 34B) of US goods, Hungary defiant

EU retaliates with tariffs on $24B (CAD 34B) of US goods, Hungary defiant

The European Union has decided to impose tariffs of up to 25 percent on American goods in retaliation for the tariffs the United States imposed on steel and aluminum. This measure was supported by 26 member states, with only Hungary opposing it.

There is a reaction from the European Union to Trump's decision.
There is a reaction from the European Union to Trump's decision.
Images source: © EPA, PAP | Al Drago / POOL
Violetta Baran

  • Decision to impose retaliatory tariffs: The European Union decided to impose tariffs on American goods valued at $24 billion USD (34 billion CAD). These tariffs are in response to the US tariffs on steel and aluminum.
  • Hungary opposes: Hungary was the only EU member country that opposed this decision. Hungary's Foreign Minister, Peter Szijjarto, announced this on the X platform.
  • Tariff implementation date: Some of the new rates, reaching up to 25 percent, will take effect in mid-April.

The decision by the European Union to impose tariffs on the United States in retaliation for the steel and aluminum tariffs was supported by all member countries except one, according to an EU source on Wednesday. Hungary was against it.

A vote against imposing retaliatory tariffs on the USA was announced on the X platform by Hungarian Foreign Minister Peter Szijjarto just before the vote.

"EU considers US tariffs unjustified and damaging"

The list of goods was proposed by the European Commission on Monday, which is responsible for trade policy in the EU. On Wednesday, member countries approved it in a vote.

In a statement, the European Commission stressed that the retaliatory tariffs "can be suspended at any time, should the U.S. agree to a fair and balanced negotiated outcome."

"The EU considers US tariffs unjustified and damaging, causing economic harm to both sides, as well as the global economy. The EU has stated its clear preference to find negotiated outcomes with the US, which would be balanced and mutually beneficial," stated the European Commission.

The document with the list of goods is 67 pages long. The list, which was voted on by the member states, includes agricultural products such as poultry, fruits, nuts, and soy. It also includes motorcycles and yachts. The list does not include whiskey due to concerns, including from wine-producing countries in Europe, about US retaliation against European alcohols.

This is the EU's response to tariffs on steel and aluminum

The approved EU tariffs are a response to the increased tariffs, up to 25 percent, on steel and aluminum imported into the USA, as of March 12. The EU tariffs will be implemented gradually, starting in mid-April. The second part will come into force on May 16, and the EU tariffs on some goods such as soy and nuts will be raised on December 1.

According to the announcements, the EU tariffs will cover American goods, whose import in 2024 totalled $24 billion USD (CAD 34 billion). Meanwhile, the value of steel and aluminum from the EU to the USA was $28 billion USD (CAD 40 billion).

However, the EU has not yet responded to the so-called mutual tariffs, which have been in effect since Wednesday. The United States imposed them on its trading partners, who have a trade surplus with the USA; for EU goods, the rate is 20 percent.

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