In response to US tariffs on steel and aluminium, the EU wants to be "smart" and hit states that are pro-Republican. The EU made good on its threat of retaliation when, in retaliation for the US imposing 25% tariffs on aluminium and steel imports, it imposed tariffs that could affect US products worth up to €26 billion, but at the same time tried to tailor them to hit Trump in his heartland.
At the heart of the EU's retaliatory measures are products from US states that elected Donald Trump: soybeans from Louisiana - the state of US House of Representatives Speaker Mike Johnson -, beef and poultry from Nebraska and Arkansas. EU timber tariffs will also affect Georgia and Virginia.
"We're trying to be smart in our response," the senior EU official said, adding: "That means we have a list of products that have high iconic value, high symbolic value, that don't cost us much."
In the list of countermeasures unveiled on Wednesday, the EU also plans to hit industrial products such as steel and aluminium products, textiles, leather goods, household appliances, household tools, plastics and wood products.
The countermeasures will enter into force in mid-April, following consultation with industry and EU Member States. In trade matters, the Commission's decisions are binding on the 27 Member States unless a qualified majority objects.
Wednesday's list adds to the products targeted in 2018 during the trade war launched by the first Trump administration. Those measures were suspended after a truce reached during the Biden administration, but will now automatically reapply to imports of U.S. products such as Harley Davidson motorcycles and Bourbon whiskey starting April 1.
In 2018, the Trump administration imposed 25% tariffs on steel and 10% tariffs on aluminum. This time, both products are hit with 25% tariffs. The list of European products targeted by the tariffs is even broader than in the first trade war, as steel and aluminum derivatives are also targeted.
No exception is made for specific categories of steel or aluminium. In 2018, U.S. companies could apply for certain exemptions. However, that is not the case this time. An EU official predicted that "critical supply chains" in the US would be affected.
"We don't think US tariffs are very smart," he said, adding: "They don't take into account what the U.S. economy needs to produce goods, such as automobiles, that depend on specific steel products."
The US tariffs, which came into force last night, will affect all US steel and aluminium imports, not just those from Europe. While the EU has not coordinated its response with allies such as Canada and the UK, officials say discussions are taking place behind the scenes.
However, Europe will now also prepare for imports from third countries, which will be diverted from the US. The EU is already facing an oversupply of steel, in particular from China, for which safeguard measures will be in place until June 2026. The Commission is considering new measures to cover any new surplus.
euronews/ gnews.cz - RoZ
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