The trade war is heating up: EU to impose counter duties on US goods
12 March 12:49
Starting April 1, 2025, the European Union will impose counter duties on American goods worth $28 billione, Reuters reports citing a statement by the European Commission
“The EU must act to protect its consumers and businesses. The countermeasures we are taking today are strong but proportionate. As the United States is applying tariffs worth $28 billion, we are responding with countermeasures worth 26 billion euros,” European Commission President Ursula von der Leyen told reporters.
At the same time, the EU executive branch said it remained open to negotiations and believed that raising tariffs was in no one’s interest.
“Our countermeasures will be introduced in two stages. Starting from April 1 and fully from April 13,” von der Leyen said.
The duties apply to a wide range of products, from boats and bourbon to motorcycles. The EU will now launch a two-week consultation to select other product categories. Proposed target products include industrial and agricultural goods such as steel and aluminum, textiles, household appliances, plastics, poultry, beef, eggs, dairy products, sugar, and vegetables. The purpose of the new measures is to ensure that the total cost of the EU’s measures corresponds to the increased value of trade affected by the new US duties.
Trump’s trade wars
Donald Trump’s administration has imposed trade restrictions on China, Mexico and Canada, the three largest trading partners of the United States. The US government imposed an import duty of 25% of the value of goods from Canada and Mexico, and a 20% duty on goods from China. An additional duty is imposed on Canadian energy products.
These measures have caused concern among U.S. companies that depend on metals imports from Canada and Mexico. They are expected to look for alternative sources of supply, in particular in the Middle East, India, Chile, and Peru, which could lead to higher prices for aluminum and copper in the United States.
In addition, Canadian consumers have responded to the imposition of duties by boycotting American goods, canceling trips to the United States and refusing to buy American alcohol.
Economists warn that such trade disputes could slow global economic growth and cause inflation. Stock markets in the Gulf countries earlier reacted with a decline due to fears of a possible trade conflict. The cryptocurrency market also collapsed earlier.
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