The European Commission stated on Thursday that a range of American goods could face possible EU tariffs if talks between the EU and the U.S. government reach an impasse. This includes leading U.S. company Boeing in the aerospace sector.
We think there are excellent opportunities to create beneficial arrangements for consumers and enterprises across the Atlantic,” stated Commission President Ursula von der Leyen. However, she also noted, “We are simultaneously continuing our preparations for every possible scenario.
Starting from mid-March, the United States has enforced 25% duties on European Union aluminum and steel products, a 25% levy on automobiles, along with a flat 10% tax on all goods imported from the EU.
EU measures targeting US goods might encompass agricultural and food items like prepared fruits, nuts, veggies, along with seafood. Industrial sectors aren’t exempt either, potentially including cars, electrical devices, engines, and machinery. Additionally, the scope extends to specific entities such as Boeing and Bourbon Whiskey.
If implemented by the European Union, these fresh retaliatory actions will extend the roster of American goods already subjected to EU tariffs. These tariffs had been temporarily halted following U.S. President Donald Trump’s declaration of a 90-day truce in the trade conflict he initiated against various global trading partners. This came after Trump threatened on April 2nd to impose reciprocal tariffs, specifically mentioning potential 20% duties on imports from the EU.
Currently, US tariffs affect 70% of EU exports to the United States, and this figure might increase to 97% if additional US inquiries into pharmaceuticals, semiconductors, and other goods lead to further tariff implementations.
The EU has opened up the list of U.S. goods subject to potential measures for consultation with European industries until June 10th. Following this, the member states must approve these actions. Additionally, there might be limitations imposed on specific EU exports of steel scraps and chemicals valued at €4.4 billion destined for the United States.
The amount of EU tariffs that might affect the updated list of US goods will be determined at a future time.
On Thursday, the Commission additionally declared its intention to contest both the 10% across-the-board tariffs and those imposed on automobiles at the WTO.
US services aren’t at risk from the potential EU countermeasures set for this Thursday, yet an EU representative stated that “all options remained available” should talks between the US and EU fall through.
The EU delegation, headed by Sabine Weyand, who leads the Directorate-General for Trade at the European Commission, was in Washington on Tuesday and Wednesday meeting with U.S. officials. However, these talks seem to have yielded no agreement, as none has been reported yet.
The EU representative stated that they were not proposing a “retaliatory” package but were seeking to “rebalance” the trading relationship with the U.S., should negotiations fail to produce an agreement.
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