Europe has announced retaliatory trade action after U.S. President Donald Trump slapped a 25 percent tariff on steel and aluminium imports. The EU put in place its countermeasures on the U.S. imports into the region targeting American products like bourbon, Harley-Davidson motorbikes, boats, etc.
Ursula von der Leyen, the European Commission President, said they deeply regret this measure highlighting tariffs are taxes. She said this is bad for business and even worse for consumers. Von der Leyen pointed out that tariffs are disrupting supply chains and bringing uncertainty to the economy. She believes that both nations will be affected as prices will go up.
Von der Leyen said its not in their common interest to burden their economies with tariffs.
The tariffs battle comes a month after President Trump signed an executive order imposing a 25 percent tariff on imports of steel, aluminum, and related derivative products – affecting about €26 billion worth of EU exports.
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Tariffs Battle: Europe to Implement Fresh Countermeasures Mid-April
The EU is set to impose a fresh round of countermeasures by mid-April. These will impact U.S. exports valued up to €18 billion. EU’s total countermeasures are valued at €26 billion to match the scale of U.S. tariffs. It will target American industrial products like steel and aluminium, textiles, leather goods, home appliances, house tools, plastics, and wood products, and agricultural products, including beef, poultry, nuts, eggs, dairy, sugar and vegetables.
Tariffs from both sides would make it difficult to manage inflation. Moreover, it would be tougher on the United States. American car makers will be dealt the blow of rising steel prices and aluminum imports will make it more expensive to produce cars in the U.S.
