European Union approves new retaliatory tariffs on the U.S.

All member international locations of the European Union besides Hungary voted Wednesday in favor of proposals that might impose tariffs on particular U.S. merchandise bought into Europe, beginning subsequent week.

The vote got here simply hours earlier than President Trump stated on social media that he would pause tariffs on most international locations for 90 days however would instantly hike tariffs on China to 125%.

The proposals have been first printed on Monday by the European Fee, the EU’s government department that coordinates buying and selling coverage for the bloc. They have been adopted at a gathering in Brussels on Wednesday, hours after drastic 20% tariffs on nearly all European items took impact.

Wednesday’s European vote got here in response to an earlier set of U.S. measures introduced by the Trump administration that slapped 25% tariffs on European metal and aluminum. The bloc stated it was nonetheless engaged on its response to separate U.S. tariffs of 20% on European automobile imports.

It stays unclear whether or not European Union international locations are amongst these affected by the president’s 90-day tariff suspension announcement — and whether or not the EU member international locations may raise their very own set of sanctions following the announcement.

EU retaliation measures 

In its assertion printed after the vote to approve new measures, the European Fee referred to as the preliminary spherical of U.S. tariffs “unjustified and damaging, causing economic harm to both sides, as well as the global economy.”

European officers stated these newest “countermeasures,” as they referred to as them, might be suspended at any time, however solely as soon as the USA agrees to what they termed a “fair and balanced negotiated outcome.”

The exact particulars of the brand new European tariffs will likely be possible printed at the beginning of subsequent week, a Fee spokesperson stated, and are anticipated to focus on American bikes, poultry, fruit and wooden, in keeping with a draft copy of the record seen by Reuters.

If not canceled, they might take impact step by step, beginning subsequent Tuesday, with additional rounds carried out in Could after which the remainder taking impact in December.

Europe escalates to barter

The European Union has proven it is going to retain some flexibility for its subsequent strikes, with the Fee saying in its assertion after the vote on Wednesday that the EU’s “clear preference” can be to have interaction in negotiations with the Trump administration, with a view to cement a buying and selling settlement that’s “balanced and mutually beneficial.”

French Commerce Minister Laurent Saint-Martin reiterated this stance throughout a go to to Indonesia on Wednesday.

“We believe that a tariff war is harmful for everyone,” Saint-Martin stated. “We must continue the work of dialogue and negotiation with the U.S. administration in order to achieve the most positive agenda possible.”

European inventory markets closed decrease on Wednesday, with indices in London, Frankfurt and Paris all having fallen round 3% on the day, capping falls of greater than 10% over the previous week for the reason that newest spherical of world tariffs was first introduced by President Trump.