EU Members Approve First Wave of Retaliatory Tariffs, Hitting Up to 21 Billi...

TMTPOST -- The European Union members on Wednesday gave the nod on the first wave of retaliation against the Trump administration’s tariffs, widening the global trade war.

Credit：the European Commission

EU Member States have voted in favour of the European Commission's proposal to introduce trade countermeasures against tariffs on steel and aluminum imports imposed by the United States, the Commission announced in a statement on Wednesday. The vote of approval means countermeasures will come into force once the Commission’s internal procedures are concluded, according to the EU’s executive branch.

“The EU considers U.S. tariffs unjustified and damaging, causing economic harm to both sides, as well as the global economy. The EU has stated its clear preference to find negotiated outcomes with the U.S., which would be balanced and mutually beneficial,” said the European Commission.

The European Commission estimated a total of nearly €21 billion worth of goods imported from the U.S. will be affected. The countermeasures will be adopted in three tranches. Duties covering €3.9 billion of U.S. imports are set to start being collected on April 15, next Tuesday, followed by measures hitting €13.5 billion of U.S. goods from mid-May, and the final round of €3.5 billion will come on December 1.

It was said that only Hungary objected the European Commission's countermeasure package, and all other 26 EU nations voted for it. The EU didn’t disclose the final list of impacted U.S. products, while a draft revealed last month showed the 27-nation bloc considered hitting a wide range of goods, including poultry, grains, clothing and metals. France, Ireland and Italy reportedly secured the removal of Bourbon whiskey from the list of targeted products following U.S. President Donald Trump’s threat of 200% counter levies on EU spirits.

On March 12, when the 25% U.S. tariffs on steel and aluminum entered effect, the European Commission said the EU’s countermeasures that could apply to U.S. goods exports worth up to €26 billion, matching the economic scope of the US tariffs.

The European Commission on March 12 said the EU’s response will be introduced in two steps. First, it will allow the suspension of existing 2018 and 2020 countermeasures against the US to lapse on April 1. The step targets a range of US products that respond to the economic harm done on €8 billion of EU steel and aluminium exports. Second, given the new U.S. tariffs affecting more than €18 billion of EU exports, it will move forward a package of new countermeasures on US exports. They will come into force by mid-April, following consultation of Member States and stakeholders.

The first wave of EU’s retaliatory tariffs include 50% tariffs on American whiskey, motorboats and motorcycles, which immediately draw Trump’s threat of higher duties on EU.

If the EU does not remove its 50% tariff on Whisky, the U.S. will shortly place a 200% tariffs on all wines, champagnes and alcoholic products coming out of France and other EU member countries, Trump said in a post on his social media Truth Social on March 13.

The EU on March 20 confirmed it decided to align the timing of the two sets of EU countermeasures. A spokesperson said the decision can provide “additional time for discussions with the U.S. administration”, and EU aims to strike the right balance of products, taking into account the interests of local producers, exporters and consumers.

The EU hasn’t responded to Trump’s planned 20% reciprocal tariffs on the bloc announced last week, neither proposed any retaliation against the 25% auto tariffs took effect on April 3.