French European Affairs Minister, Benjamin Haddad, stated on Wednesday that the European Union (EU) could escalate its response to U.S. tariffs, though he emphasised that a trade war benefits no one.
President Donald Trump‘s increased tariffs on all U.S. steel and aluminium imports took effect on Wednesday, stepping up a campaign to reorder global trade norms in favour of the U.S. that drew swift retaliation from Europe.
The European Commission said it will end its current suspension of tariffs on U.S. products on April 1 and that its tariffs will be fully in place by April 13.
EU Counter-Tariffs
In response, the European Commission said it will impose counter-tariffs on 26 billion euros ($28.33 billion) worth of U.S. goods from next month.
The commission said it will end the current suspension of tariffs on U.S. products on April 1 and will also put forward a new package of countermeasures on U.S. goods by mid-April.
“We have the means to go further, if we want,” Haddad told TF1 TV.
“For example, if it came to a situation where we had to go further, digital services or intellectual property could be included,” he added.
Counter Measures
“The counter measures we take today are strong but proportionate. As the United States are applying tariffs worth $28 billion we are responding with counter measures worth 26 billion euros,” European Commission chief Ursula von der Leyen told reporters.
“The EU must act to protect its consumers and business.”
The suspended tariffs apply to products ranging from boats to bourbon to motorbikes, and the EU said it would now start a two-week consultation to pick other product categories.
European Union’s new counter-tariffs will target around 18 billion euros in goods, with the overall objective to ensure that the total value of the EU measures corresponds to the increased value of trade impacted by the new U.S. tariffs, the EU said.
‘Open To Negotiations’
“In the meantime, we will always remain open to negotiations,” von der Leyen said.
“We firmly believe that in a world fraught with geoeconomic and political uncertainties, it is not in our common interest to burden our economies with such tariffs. We are ready to engage in a meaningful dialogue.”
The proposed target products include industrial and agricultural products, such as steel and aluminium, textiles, home appliances, plastics, poultry, beef, eggs, dairy, sugar and vegetables.
($1 = 0.9178 euros)
(With inputs from Reuters)
