In response to President Trump's new tariffs, the EU prepares retaliatory actions that may further strain transatlantic trade relations, impacting consumers and industries alike.
**EU's Firm Response to Trump's Tariffs Sets Stage for Potential Trade War**
**EU's Firm Response to Trump's Tariffs Sets Stage for Potential Trade War**
The EU outlines countermeasures against the US as both sides brace for economic repercussions.
The European Union (EU) swiftly retaliated against President Donald Trump’s implementation of 25% tariffs on steel and aluminum products, which took effect early on Wednesday. The reaction from EU officials was immediate and firm, emphasizing the detrimental effects such tariffs could have on businesses and consumers alike.
European Commission President Ursula von der Leyen highlighted that tariffs function as taxes that ultimately harm economic activity. The EU's countermeasures are set to kick in on April 1, targeting a variety of American products including jeans, motorcycles, bourbon, and peanut butter. These measures echo previous tariffs introduced during the Trump administration in 2018 and 2020.
A comprehensive list of affected items, nearly 100 pages long, is being circulated and could cover textiles, home appliances, and a range of food products following a two-week consultation with stakeholders. The EU aims to impose tariffs worth €26 billion (£22 billion) on US exports, raising concerns about increased prices for consumers in Europe, particularly concerning products like orange juice and bourbon.
Dirk Jandura, head of Germany's BGA federation, expressed worry that higher supermarket prices could impact German consumers. Apart from consumers, businesses, particularly in the steel sector, are under threat. The EU's strategic response aims to consolidate its stance while awaiting further US actions in the evolving dispute.
António Costa, the President of the EU Council, urged the US to reconsider its position as tensions escalate, with Trump vowing to respond to EU actions. Discussions within Austria reflect similar apprehensions regarding potential retaliatory measures and their economic impact.
The EU points out that many American products could be sourced from other countries, suggesting that consumers might adapt without large financial ramifications. Furthermore, the impact of these tariffs is likely to touch state economies in the US, particularly in Republican areas like Nebraska and Louisiana, which export significant agricultural products.
The implications of these tariffs extend heavily into the drinks industry on both sides of the Atlantic. Producers of spirits, including American whisky, have already been affected by past tariffs, and reinstating the 25% tariff on American whiskey particularly affects industries reliant on exports. French cognac producers face similar challenges as tariffs threaten their primary markets, leading to fears of job losses.
Henrik Adam, head of the European Steel Association, warned that Trump's policies threaten the stability of the European steel industry, as steel exports from the US have already drastically fallen in the wake of previous tariffs. The anticipated broader impact of the new tariffs heralds a potential escalation into a full-fledged trade war, further complicating EU-US economic relations.
European Commission President Ursula von der Leyen highlighted that tariffs function as taxes that ultimately harm economic activity. The EU's countermeasures are set to kick in on April 1, targeting a variety of American products including jeans, motorcycles, bourbon, and peanut butter. These measures echo previous tariffs introduced during the Trump administration in 2018 and 2020.
A comprehensive list of affected items, nearly 100 pages long, is being circulated and could cover textiles, home appliances, and a range of food products following a two-week consultation with stakeholders. The EU aims to impose tariffs worth €26 billion (£22 billion) on US exports, raising concerns about increased prices for consumers in Europe, particularly concerning products like orange juice and bourbon.
Dirk Jandura, head of Germany's BGA federation, expressed worry that higher supermarket prices could impact German consumers. Apart from consumers, businesses, particularly in the steel sector, are under threat. The EU's strategic response aims to consolidate its stance while awaiting further US actions in the evolving dispute.
António Costa, the President of the EU Council, urged the US to reconsider its position as tensions escalate, with Trump vowing to respond to EU actions. Discussions within Austria reflect similar apprehensions regarding potential retaliatory measures and their economic impact.
The EU points out that many American products could be sourced from other countries, suggesting that consumers might adapt without large financial ramifications. Furthermore, the impact of these tariffs is likely to touch state economies in the US, particularly in Republican areas like Nebraska and Louisiana, which export significant agricultural products.
The implications of these tariffs extend heavily into the drinks industry on both sides of the Atlantic. Producers of spirits, including American whisky, have already been affected by past tariffs, and reinstating the 25% tariff on American whiskey particularly affects industries reliant on exports. French cognac producers face similar challenges as tariffs threaten their primary markets, leading to fears of job losses.
Henrik Adam, head of the European Steel Association, warned that Trump's policies threaten the stability of the European steel industry, as steel exports from the US have already drastically fallen in the wake of previous tariffs. The anticipated broader impact of the new tariffs heralds a potential escalation into a full-fledged trade war, further complicating EU-US economic relations.
