The European Commission may now change its countermeasures meant to respond to the U.S. President Donald Trump’s additional tariffs that he announced in March and April.
In March, Trump imposed 25% tariffs on steel and aluminum imports, causing the EU to respond by imposing tariffs on motorboats, motorcycles, beer, poultry, beef and other produce such as soybeans, tomatoes and raspberries. This tariff plan was meant to take effect on April 13 and would cover an estimated €26 billion ($28 billion) worth of U.S. goods.
According to a document seen by Reuters, the commission is now proposing counter-tariffs of 25%, which the EU trade chief, Maros Sefcovic, stated has less impact.
Under this new proposal, the tariffs on goods, such as diamonds, eggs, dental floss, sausages and poultry, will take effect on May 16, while almonds and soybeans will face tariffs on December 1.
Furthermore, bourbon, wine and dairy, which were on the original tariff plan, will not be included in the list of goods affected by this new tariff plan.
As for the 20% tariffs Trump imposed on the EU this month, the EU is likely to abandon its “zero-for-zero” tariffs proposal on cars and industrial goods and focus on buying $350 billion of American energy to get a reprieve instead.
European Commission President Ursula von der Leyen originally proposed this zero tariffs plan following Trump’s 20% tariffs announcement. However, the U.S. president refused it. He stated that the bloc has to purchase U.S.’ energy to reduce the trade deficit by $350 billion.
Trump also stated that the EU must reduce its non-monetary tariffs measures as well, claiming that these barriers created rules and regulations that prevent products from being sold at EU’s members.
