The European Union is escalating its trade conflict with the United States by proposing tariffs of up to 25% on a range of American goods. This move comes in response to the duties imposed by the US on steel and aluminum imports.
Targeted Products
According to an internal document, the European Commission plans to target the following US exports:
- Soybeans
- Tobacco
- Steel
- Textiles
- Eggs
- Dental floss
- Poultry
- Diamonds
- Motorbikes
- Luxury boats
- Domestic appliances
- Agricultural products
Notably, bourbon was removed from the list after the US threatened to impose a 200% tariff on EU wine and spirits.
Background
These proposed tariffs are a direct response to the US imposing a 25% duty on steel and aluminum imports. The EU is also considering separate responses to the US's “reciprocal tariffs” and a potential 25% automobile duty.
EU's Proposal for Resolution
Brussels has proposed a “zero-for-zero” tariff deal to the US on industrial products, including automobiles and chemicals. However, this suggestion was rejected by the US, which stated that the EU could avoid the duties by purchasing more American liquefied natural gas (LNG).
Upcoming Vote and Implementation
EU ambassadors are expected to vote on the proposed list of tariffs. Approval requires a 'qualified majority' – 15 member states representing 65% of the EU population.
The implementation of the measures is planned in phases:
- Some measures, including those on soybeans and some nuts, will take effect on December 1.
- A portion of the tariffs will be implemented on April 15.
- The majority of the tariffs are expected to be in force by May 16.