EU plans 25% retaliatory tariffs on American goods
The European Commission plans to propose retaliatory tariffs of up to 25% on American goods, according to a document obtained by the Polish Press Agency (PAP) on Monday. This is in response to Washington's decision to impose additional tariffs on the European Union.
The Commission's draft decision comprises 67 pages, mostly containing tables listing the goods that will be subject to EU tariffs. The proposal primarily suggests a 25% tariff, with a smaller number at 10%.
According to the document seen by PAP, the EC did not propose tariffs on American whiskey. However, the list includes tariffs on yachts imported from the USA into the EU. There are also food products such as eggs, poultry, soy, and meat products.
Trade ministers from EU countries, who met on Monday at an extraordinary session in Luxembourg, also agreed on the need to work on retaliatory tariffs while trying to negotiate with the USA to lower tariff rates. The EU is willing to uphold its offer of mutual zero rates on industrial goods. The meeting was convened by the Polish presidency of the EU Council.
The kind of tariffs we saw last week have not been seen in the past 100 years, assessed Deputy Minister of Development Michał Baranowski.
The Commissioner responsible for trade negotiations with the USA, Maroš Šefčovič, announced after the Luxembourg meeting that member states would receive the proposal for retaliatory tariffs on Monday evening, in response to American tariffs on steel and aluminium.
Member states are set to vote on this issue on Wednesday (a majority of 15 countries, representing 65% of the EU population, is needed to reject the proposal). This is not a new list; during Donald Trump's first presidency (2017-21), the EU imposed tariffs in response to tariffs on steel and aluminium. The EC has now updated this list.
American tariffs on EU imports. Brussels will respond
10% tariffs on nearly all goods from most countries worldwide came into effect on Saturday. This is part of the tariffs announced by Trump on Wednesday.
However, these new tariffs do not apply to Canada and Mexico, which previously had a 25% tax imposed by President Trump (affecting about half of imports). Also exempt from these tariffs are steel, aluminium, cars, and car parts, subject to separate 25% tariffs, as well as copper, medication, semiconductors, and lumber (these will be additionally taxed later), along with energy carriers and minerals not available in the USA.
On 9 April, additional taxes are set to be implemented on goods from 57 countries with a trade surplus with the United States.
This group includes China and the European Union, which will be subject to additional 34% and 20% tariffs respectively, as well as Japan (24%), South Korea (25%), India (26%), Vietnam (46%), and Taiwan (32%).
On Friday, Chinese authorities announced the introduction of retaliatory tariffs of 34% on all goods imported from the USA in response to Washington's announced "mutual tariffs" on Chinese products. The decision, approved by the State Council, will take effect on 10 April.
