EU Proposes $100 Billion in Tariff Countermeasures Amid US Trade Tensions
The European Commission considers retaliatory measures targeting US goods valued at nearly €100 billion in response to tariffs imposed by the Trump administration.
The European Commission is drafting a series of countermeasures aimed at US goods amounting to nearly €100 billion, responding to the tariffs imposed by former President Donald Trump on European Union exports.
This new strategy is primarily intended to strengthen the EU's negotiating position, rather than to be enacted immediately.
Currently, both parties are engaged in discussions to avert an escalating trade conflict, following Trump's implementation of tariffs affecting the EU and other trading partners.
European trade officials, including Sabine Weyand and Björn Seibert, have briefed ambassadors from EU member states on the potential package, which may include incentives for the US, such as increased investment in various sectors.
Diplomats suggest possible sweeteners could encompass purchases of American liquefied natural gas, soybeans, and military equipment, alongside a collaborative stance against China.
The proposed €100 billion countermeasure would only be enacted if the discussions regarding the cancellation of a 20% US tariff on EU goods do not succeed.
Currently, these tariffs have been suspended until July.
Trump's administration has already enforced tariffs on EU steel, aluminum, and automobiles, in addition to a general 10% duty on a range of goods, all remaining in effect.
In response to Trump’s 25% duties on steel and aluminum, the EU has previously threatened to impose tariffs worth €21 billion.
The ramifications of President Trump’s trade policies could potentially affect 97% of EU exports to the US, amounting to an estimated €549 billion in goods.
EU Trade Commissioner Maroš Šefčovič has labeled the current trade situation as unacceptable.
Amid ongoing tensions, Slovakia and Hungary have expressed concerns regarding an EU proposal to block Russian gas imports and impose tariffs on uranium, as both nations continue to depend significantly on Russian gas supplies.
In 2024, Slovakia and Hungary are projected to import around 16 billion cubic meters of gas from Russia, highlighting their reliance on Russian state utility Gazprom.
As these discussions progress, the EU's overall strategy appears to incorporate both a readiness to negotiate with the US and a plan for potential retaliation in case diplomatic efforts falter.
This dual approach highlights the complexities of current transatlantic trade relations and underscores the interconnectedness of global trade negotiations.
This new strategy is primarily intended to strengthen the EU's negotiating position, rather than to be enacted immediately.
Currently, both parties are engaged in discussions to avert an escalating trade conflict, following Trump's implementation of tariffs affecting the EU and other trading partners.
European trade officials, including Sabine Weyand and Björn Seibert, have briefed ambassadors from EU member states on the potential package, which may include incentives for the US, such as increased investment in various sectors.
Diplomats suggest possible sweeteners could encompass purchases of American liquefied natural gas, soybeans, and military equipment, alongside a collaborative stance against China.
The proposed €100 billion countermeasure would only be enacted if the discussions regarding the cancellation of a 20% US tariff on EU goods do not succeed.
Currently, these tariffs have been suspended until July.
Trump's administration has already enforced tariffs on EU steel, aluminum, and automobiles, in addition to a general 10% duty on a range of goods, all remaining in effect.
In response to Trump’s 25% duties on steel and aluminum, the EU has previously threatened to impose tariffs worth €21 billion.
The ramifications of President Trump’s trade policies could potentially affect 97% of EU exports to the US, amounting to an estimated €549 billion in goods.
EU Trade Commissioner Maroš Šefčovič has labeled the current trade situation as unacceptable.
Amid ongoing tensions, Slovakia and Hungary have expressed concerns regarding an EU proposal to block Russian gas imports and impose tariffs on uranium, as both nations continue to depend significantly on Russian gas supplies.
In 2024, Slovakia and Hungary are projected to import around 16 billion cubic meters of gas from Russia, highlighting their reliance on Russian state utility Gazprom.
As these discussions progress, the EU's overall strategy appears to incorporate both a readiness to negotiate with the US and a plan for potential retaliation in case diplomatic efforts falter.
This dual approach highlights the complexities of current transatlantic trade relations and underscores the interconnectedness of global trade negotiations.
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