The European Union (EU) will implement counter-tariffs on $28 billion (26 billion euros) worth of U.S. goods starting next month, the European Commission announced Wednesday, escalating a global trade dispute in response to U.S. tariffs on steel and aluminium.
The EU executive said, however, that it remained open to negotiations and considered higher tariffs in no one’s interest.
Metal Tariffs
U.S. President Donald Trump‘s increased tariffs of 25% on all steel and aluminium imports took effect on Wednesday as prior exemptions, duty-free quotas and product exclusions expired.
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.
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)
