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Tipsheet

European Union Makes Moves Amid Trade War With Trump

European Union Makes Moves Amid Trade War With Trump
AP Photo/Evan Vucci

The European Union (EU) on Wednesday voted to approve the first round of retaliatory tariffs against the United States.

The new duties are intended to counter tariffs President Donald Trump issued on the EU and several other nations to drive US-based manufacturing and win more favorable trade deals. The EU’s tariffs include 25 percent duties on a range of US products, The Hill reported.

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The retaliatory tariffs are in response to U.S. import taxes on steel and aluminum that were initiated in March, the Commission said. Duties will start being collected from European importers on April 15.

The tariffs will be levied at 25 percent, Euro News reported Wednesday, and will apply to a list of goods that includes orange juice, poultry, almonds steel and aluminum, soybeans, tobacco and yachts.

The official list of goods that will be subject to the tariffs was not immediately made public by the EU on Wednesday.

In March, the European Commission said that it was considering tariffs on about $20 billion worth of U.S. products.

The European Commission, the bloc's executive arm, said duties would start being collected from April 15. The response package was unveiled last month targeting a range of goods, CNBC reported.

The 27-nation bloc had warned it would act to protect European business and consumers after U.S. President Donald Trump imposed 25% duties on the metals. The EU also faces tariffs of 20%, along with over 180 countries and territories, as announced by the White House leader on April 2.

"The EU considers US tariffs unjustified and damaging, causing economic harm to both sides, as well as the global economy. The EU has stated its clear preference to find negotiated outcomes with the US, which would be balanced and mutually beneficial," the European Commission said.

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Other tariffs on U.S. exports to European nations will take effect on May 15. The EU issued a statement saying that “countermeasures can be suspended at any time, should the US agree to a fair and balanced negotiated outcome.”

President Trump has not yet commented on the EU’s new tariffs, but his response to China’s retaliation could provide insight into what he might do next. On Monday, he threatened to add 50 percent tariffs on top of the ones he announced last week if the Chinese regime does not reverse course on its threat to add 34 percent more on US goods.

Trump has continued to tout his tariff gambit even among criticism coming from the left and right. Many have raised concerns that the duties will negatively impact American consumers who are already dealing with high inflation rates.

However, other nations have taken a more conciliatory approach. Israel, Vietnam, and many other countries have begun discussions with Washington to avoid the impact of Trump’s tariffs.

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