The European Commission announced on Wednesday its plan to implement a series of tariffs on US goods by April 1.
These "countermeasures" were revealed following the enforcement of US tariffs of up to 25% on steel and aluminum imported from the EU.
The Commission stated that these measures aim to safeguard European businesses, workers, and consumers from the adverse effects of what it deems unjustified trade restrictions.
"The goal is to ensure that the total value of the EU's response aligns with the increased trade value affected by the new US tariffs," the Commission explained.
Commission President Ursula von der Leyen noted in a statement, "As the US imposes tariffs amounting to $28 billion (€26 billion), we will respond with countermeasures valued at €26 billion."
She emphasized, "We will always remain open to negotiation. In a world filled with geopolitical and economic uncertainties, it is not in our collective interest to impose tariffs that burden our economies."
Which US goods will be subject to EU tariffs?
The European Commission, tasked with managing trade disputes for the EU's 27 member states, indicated that it is reinstating measures that were previously enacted during Donald Trump's presidency when similar tariffs were introduced by the US.
Additionally, new measures will be introduced. Overall, the EU's response will target steel and aluminum, as well as textiles, leather products, home appliances, tools, plastics, and wood.
Agricultural products will also face tariffs, including poultry, beef, certain seafood, nuts, eggs, sugar, and vegetables.
The EU's countermeasures will be implemented in two phases, as stated by von der Leyen. The initial measures will be reinstated on April 1, with all measures anticipated to be fully operational by April 13.
What is the rationale behind Trump's tariffs on US trade partners?
The Trump administration has unsettled global markets with its swift enactment of significant tariffs targeting several major trading partners.
The initial countries affected include Canada, Mexico, and China, all of which have responded with their own countermeasures.
Trump's tariffs have faced criticism for their erratic nature, as the White House has frequently altered plans at the last minute.
Leaders from some of the United States' closest allies hurried to Washington in an effort to mitigate the threat of tariffs, but it remains uncertain whether Trump will be open to negotiations and concessions as he was during his previous term.
Trump has asserted that the tariffs aim to correct perceived unfair trade practices. Given the substantial purchasing power of US consumers, many nations export more to the US than they import.
However, economists have cautioned that tariffs may ultimately disadvantage US consumers and have raised doubts about their effectiveness in encouraging manufacturers to relocate production to the United States.
Financial markets have reacted nervously to the potential for the world's largest economy to slide into a recession, yet Trump has downplayed concerns regarding a decline in Wall Street indexes, stating he does not foresee an economic downturn.
