EU Approves Over €20 Billion Retaliatory Tariffs On US
The EU can apply retaliatory tariffs on around €22 billion worth of US goods like orange juice and motorcycles after the bloc’s 27 countries agreed to the measures, the European Commission announced.
“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,” the EU executive said in a statement.
This comes after China and Canada imposed their own retaliatory tariffs on the US, edging the world closer to a global trade war.
Only Hungary opposed the package, according to four EU diplomats with direct knowledge of the vote, while all other 26 countries voted in favor.
Trump’s tariffs on the EU and dozens of other states came into effect this week, this includes a major 104% on Chinese imports.
The 27-nation bloc is now subject to 25% import duties on steel, aluminium, and cars — along with a broader 20% tariff on nearly all other EU exports.
In response, the European Commission, which oversees EU trade policy, proposed on Monday a set of retaliatory tariffs — mostly set at 25% — on a wide range of American products.
These countermeasures specifically address the US metals tariffs, while the Commission continues to evaluate how to respond to the wider levies, including those on vehicles.
A committee of trade experts from all 27 EU countries voted on the Commission’s proposal on Wednesday afternoon. The vote would have been blocked from going through only if 15 member states voted against it. This adjustment followed pressure from major wine exporters France and Italy, especially after Trump threatened to slap 200% tariffs on EU wine and spirits should the bloc proceed with its planned 50% duty on American bourbon.
The trade dispute is intensifying globally. Trump has already escalated tariffs on China after Beijing introduced its own countermeasures last week. In response, China has vowed to “fight to the end.”