The European Union finally announced to retaliate against the US on April 9th over Donald Trump’s tariff policy. In response to Trump’s tariffs, the EU on Wednesday decided to take the matter into their own hands by announcing it’s first set of counter measures against the US. The approval was granted on the same day President Trump’s “reciprocal” tariffs on the EU and several other countries came into force, including a steep 104% tariff on China—further intensifying his tariff offensive and triggering broader sell-offs in financial markets.
According to EU, it’s latest counter-measures would impact close to 20 billions worth of American exports to the bloc, which includes products like soybeans, motor cycle and beauty products. The commission also stated that “these counter-measures can be suspended at any moment should the US agree to a fair and balanced negotiated outcome”. These counter measures will come into effect from next week.
Europe’s response to Trump’s tariffs
Under President Trump’s policy targeting countries he claims maintain high barriers to U.S. imports, the 27-member European Union now faces 25% tariffs on steel, aluminum, and automobiles, along with a broader 20% tariff on nearly all other goods.
In retaliation to this the Commission has announced to impose tariffs—mostly at a rate of 25%—on a variety of U.S. imports starting next Tuesday, specifically in response to the U.S. metal duties. The bloc is still evaluating its response to the automotive and broader tariff measures. On Wednesday afternoon, a committee of trade experts from the EU’s 27 member states voted on the European Commission’s proposal. According to EU diplomats, 26 countries supported the measure, with only Hungary opposing it.
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The outcome was largely anticipated, as the Commission had already consulted member states and revised its initial mid-March list, removing U.S. dairy products and alcoholic beverages. The measures are set to be implemented in phases—beginning on April 15, followed by May 16, with the final stage targeting almonds and soybeans on December 1.
“These countermeasures may be suspended at any time if the U.S. agrees to a fair and balanced negotiated solution,” the European Commission said in a statement.
According to a document reviewed by Reuters, the targeted U.S. imports include maize, wheat, barley, rice, motorcycles, poultry, fruit, wood, clothing, and dental floss. These goods amounted to roughly 21 billion euros ($23 billion) in trade last year, indicating that the EU’s retaliatory measures will affect products valued less than the 26 billion euros worth of EU metal exports impacted by the U.S. tariffs.
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China’s decides to put 84% tariffs on US goods
China on Wednesday announced to put an additional 84% tariffs on US goods after it imposed a whopping 104% on it’s own goods for not withdrawing it’s previous 34% tariffs that it had put earlier on US exports.
According to a Bloomberg report, Chinese Premier Li Qiang stated that China has sufficient policy measures to “fully offset” any negative external impacts, following President Donald Trump’s imposition of a remarkable 104% tariff on all Chinese imports on Wednesday.
