EU Prepares Two Rounds of Tariffs in Response to US Moves
The European Union reportedly hopes to reach a deal with the U.S. to remove and prevent the country’s new tariffs, but is ready to start implementing countermeasures.
The EU is set to approve one set of tariffs targeting the U.S. on April 15 and plans to implement a second set a month after that, EU trade ministers said during a press conference following their meeting in Luxembourg, Reuters reported Monday (April 7).
The first set of tariffs, which has not yet been finalized, currently covers U.S. goods ranging “from dental floss to diamonds,” according to the report. The list has shrunk over time as EU countries and industries objected to the inclusion of certain products due to fears of U.S. retaliatory tariffs.
The second set of tariffs is expected to be larger and could target U.S. services and digital services or limit U.S. companies’ access to the EU’s public procurement tenders, the report said.
The EU proposed “zero-for-zero” tariffs on cars and other industrial goods. Elon Musk has pushed for such a proposal, but a Trump trade advisor dismissed the idea, per the report.
There is a smaller volume of goods for the EU to target than the U.S. can — given that the EU imports 334 billion euros of U.S. goods, while the U.S. imports 532 billion euros of EU goods — but the American position could also be pressured by the stock market declines that began with the imposition of U.S. tariffs, according to the report.
President Donald Trump announced sweeping reciprocal, country-based tariffs Wednesday (April 2), saying: “They do it to us, we do it to them.”
Trump also announced a 10% blanket tariff on imports, a 25% tariff on automobile imports, and a similar tax on auto parts that will go into effect later. He had already imposed tariffs on Canada, Mexico and China, and on automobiles, steel and aluminum.
With investors rattled by the uncertain impacts of tariffs, the stock market and other sectors have been impacted. For example, several technology and FinTech companies reportedly paused their activities related to initial public offerings, and cryptocurrency prices slipped.
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