EU member states approved on Wednesday a 25 percent tariff on several U.S. goods, joining China and Canada in retaliating against U.S. tariffs. The approval came on the day that Trump’s tariffs on the EU and dozens of countries took effect, including a 104 percent levy on China.
The European Union will target a range of U.S. imports starting next Tuesday in response to the U.S. tariffs on metals. The bloc is still assessing how to respond to the car and broader levies.
EU open for negotiations
The bloc currently faces a 25 percent import tariff on steel and aluminium, and cars, as well as sweeping tariffs of 20 percent on almost all other goods.
“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,” stated the EU Commission today.
EU imports from the U.S. totalled around $23 billion last year, meaning the EU’s retaliation will be against goods worth less than the 26 billion euros of EU metals exports hit by U.S. tariffs.
EU diplomats said that 26 EU members had voted in favour, with only Hungary against. Meanwhile, France, Ireland and Italy secured the removal of Bourbon whiskey from the list of targeted products after Trump threatened that its inclusion would trigger a 200 percent tariff on European alcohol.
“They can be suspended at any time should U.S. agree to a fair & balanced negotiated outcome,” stated the Commission’s trade spokesperson Olof Gill on X.
The bloc is expected to approve a second wave of tariffs in response to the car and broader levies.
Read: China retaliates with 84 percent tariffs on U.S. goods
China, Canada retaliate
This week, Trump responded to Beijing’s counter-tariffs announced last week, nearly doubling duties on Chinese imports. In response, China said it would impose 84 percent tariffs on U.S. goods from Thursday. Trump’s sweeping tariffs took effect earlier on Wednesday. China was the hardest-hit nation, with a charge of 104 percent on all its goods.
“The U.S.’s practice of escalating tariffs on China is a mistake on top of a mistake, which seriously infringes on China’s legitimate rights and interests and seriously damages the rules-based multilateral trading system,” China’s State Council Tariff Commission said in a statement announcing the fresh tariffs.
In addition to increasing charges on U.S. imports effective April 10, China’s commerce ministry imposed export controls on 12 American companies and added six more U.S. firms to its “unreliable entity list.” Companies on that list are banned from trading or investing in China. Furthermore, China filed a complaint to the World Trade Organization over the latest U.S. tariffs, according to the commerce ministry.
Canada is also implementing a 25 percent counter-tariff on certain U.S.-made vehicles. Canada is the largest export market for cars from the U.S., with officials estimating that around 8 percent of the 750,000 vehicles shipped from the U.S. to Canada do not comply with the existing trade treaty.
The country emerged from Trump’s recent sweeping tariffs announcement with no new charges beyond what the White House had previously disclosed. This includes the 25 percent tariff on vehicles, a 25 percent duty on steel and aluminum, and a 25 percent charge on Canadian imports that are not USMCA-compliant.
