The European Union (EU) announced on Wednesday, March 12, that it plans to impose a 50% tariff on American whiskey, Harley-Davidson motorcycles, agricultural products, and more starting from April 1 in response to the Trump Administration’s decision to impose a 25% tariff on EU steel and aluminum products. The United States has responded to the EU’s retaliatory tariffs.
EU officials stated that these tariffs are aimed at maximizing the political and economic costs for the United States while minimizing the impact on European businesses and consumers. At the same time, the EU remains open to negotiations, indicating that if a deal is reached between the US and the EU, the EU may withdraw these retaliatory tariffs.
According to the EU’s announcement, starting from April 1, the following US goods will face a 50% tariff:
– American whiskey (Kentucky bourbon)
– Motorcycles (Harley-Davidson)
– Yachts
– Cranberries
– Garden umbrellas
– Tablecloths and handkerchiefs
The EU plans to further increase tariffs on US export goods worth 18 billion euros (or 19.6 billion US dollars) on April 13, including:
– American chewing gum
– Poultry
– White chocolate
– Soybeans
– Carpets
– Watermelons
The EU anticipates that these tariffs will affect US export goods valued at approximately 24.5 billion US dollars. Furthermore, the EU could choose to expand the tariff impact to 28 billion US dollars to match the scale of US tariffs on EU steel and aluminum products.
The EU stated that this list will still need to be finalized after discussions with member states and relevant stakeholders.
US Trade Representative Jamieson Greer stated, “The EU’s punitive actions completely disregard the national security needs of the United States and the world, demonstrating that the EU’s trade and economic policies are disconnected from reality.”
EU Trade Commissioner Maroš Šefčovič visited Washington last month in an attempt to ease trade disputes but mentioned on Wednesday, March 12, that the US “seems unwilling to reach an agreement.”
Greer, the US Trade Representative, added, “For years, the EU has been against the US-led process of reindustrialization. Previous US administrations have tried to cooperate effectively with the EU to address global overcapacity issues in steel, aluminum, and other industries, but the actions taken by the EU have always been too slow and insufficient.”
“If the EU could act as swiftly punishing the US in solving global overcapacity issues, our situation today might be completely different.”
EU Commission President Ursula von der Leyen stated, “Tariffs do not serve our common interests in a world filled with geopolitical and economic uncertainties.”
Trump stated that tariffs will help create manufacturing jobs in the US.
In this EU tariff list, some goods may seem familiar as many items were included in the EU’s retaliatory tariff list against the US in retaliation for the 2018 US steel and aluminum tariffs against the EU.
These tariffs went into effect in 2018 but were suspended after an agreement was reached during the Biden Administration. Now, some tariffs will be reimposed with even higher rates.
Chris Swonger, Chairman of the Distilled Spirits Council of the United States, expressed disappointment over the EU’s decision, emphasizing that it will severely impact the recovery of American distilled spirits in the European market.
The US Chamber of Commerce’s office in the EU stated on Wednesday that “both sides must seek immediate negotiation solutions to avoid further escalation.”
The UK did not retaliate against the EU’s tariffs on US goods.
UK Business Secretary Jonathan Reynolds stated on Wednesday, “We will continue to engage in constructive dialogue with the US to uphold the interests of British businesses.”
Reynolds did not rule out the possibility of imposing tariffs on American goods in the future, adding, “We do not rule out any options and will decide on a response based on national interests.”
(Information sourced from The Wall Street Journal and Associated Press)