The EU is entering a “trade war” with the US

In response to the tariffs imposed by President Trump, the European Commission announced on Wednesday that it would impose its own package of tariffs on imports of goods from the United States by April 1.

 

"To the tariffs of up to 25% on steel and aluminum from the EU introduced by the US administration, which will affect around 5% of all EU exports to the US worth $28 billion, we are responding with countermeasures worth €26 billion to protect European businesses, workers and consumers from the impact of unjustified trade restrictions," said European Commission President Ursula von der Leyen.

 

"We are always open to negotiations and are convinced that in a world full of geopolitical and economic uncertainty, it is not in our common interest to burden our economies with tariffs. We are therefore ensuring that the total cost of EU measures is in line with the cost of trade increased by the new US tariffs," von der Leyen added.

 

EU tariffs will be imposed on steel and aluminum in physical terms, textiles, leather goods, household appliances, household tools, plastics and wood, and will also affect agricultural products, including poultry, beef, some seafood, nuts, eggs, sugar and vegetables.

 

The EC President stated that the EU countermeasures will enter into force in two stages: the previous measures will be reinstated from April 1, and the remaining measures will enter into force from April 13.

 

EU Council President Antonio Costa called for de-escalation of the situation and suggested that the EU and the US find a compromise to resolve the issue.

 

"There are enough wars in the world that we need to stop, so we don't need to create a trade war," Costa said at a press conference with Scholz, where he also said that any response from the European Commission would be "proportionate."

 

Meanwhile, US Trade Representative Jamieson Greer said that the measures announced by the EU "do not reflect reality and completely ignore the imperatives of US national security and, indeed, international security."

 

So far, grains and oilseeds from the US have not been subject to tariffs, but if Trump implements the promised 25% tariff on all EU goods on April 2, the EC will impose tariffs on all US goods, which will negatively affect US corn and soybean supplies.