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European Commission Suggests 25 Percent Counter-Tariffs on US Commodities

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The European Commission has suggested 25 percent counter-tariffs on a variety of US commodities in reaction to Donald Trump's recent "reciprocal tariffs."

Although the majority of the charges wouldn't be collected until mid-May, the plan would go into effect on April 15 if EU member states ratify it later this week.

Certain commodities will be subject to tariffs starting on May 16 and others later in the year, on December 1.

The counter-tariffs will have less of an effect than the previously announced 26 billion euros ($28.45 billion), according to European Union trade commissioner Maros Sefcovic on Monday.

The EU already strengthened its steel protections on April 1 to cut imports by 15 percent, in addition to these counter-tariffs. The Commission is also considering aluminum import limitations.

Dozens of product categories that the commission intends to target were highlighted. Diamonds, eggs, tooth floss, sausages, and fowl are all included in this. On December 1, the soybean and almond counter-tariffs will go into force.

Dairy products, wine, and bourbon were taken off the Commission's initial list in March.

Trump threatened to impose a 200 percent counter-tariff on EU alcoholic beverages if the bloc proceeded with the 50 percent levy on bourbon that the Commission had designated.

 

France and Italy were particularly concerned about Trump's threat due to their huge wine industries.

According to earlier reports, the EU trade ministers convened in Luxembourg to discuss bargaining tactics and draft possible retaliatory actions.

Trump's imposition of high tariffs on imports of steel and aluminum in 2018 marked the beginning of the US-EU trade war. The EU responded by imposing a 25 percent duty on a number of goods, including whiskey made in the US.

Also Read: 6 Successful Business Ventures of Cristiano Ronaldo

As a result of negotiations led by former President Joe Biden, that levy was lifted in late 2021, and American whiskey has since been allowed to enter the EU duty-free.

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