Trade war begins: From meat to toilet paper, the EU imposes $28 billion tariffs on U.S. products, making billions of dollars more expensive and pushing global economy to recession
The 27-country group faces import tariffs on steel, aluminum and automobiles of 25%, with nearly all other commodities having a “countdown” tariff rate of 20% from Wednesday. President Trump’s tariffs cover about 70% of EU exports to the United States – a total of 532 million euros ($585 million) last year, which may also include responsibilities for copper, medicines, semiconductors and wood.
When Trump hits steel and aluminum imports with 25% tariffs in March, the EU decided to take the “eye-eye” approach.
“We will react in areas that hurt the United States,” said a senior EU official. Officials have previously said the EU will target the commodities of politically important countries, including soybeans produced in Louisiana, home of U.S. Speaker Mike Johnson, who pushed Trump’s agenda in Congress.
Despite this, President Trump is the closest adviser billionaire Elon Musk told Italian league leader Matteo Salvini on Saturday that he hopes the U.S. and Europe will be able to build a “very close, stronger partnership” and reach a “zero Tarif district.” Musk spoke with Salvini on a videotape at the Florence League Conference. Salvini is the leader of the far-right, anti-immigrant coalition of the Italian Conservative government led by Prime Minister Giorgia Meloni.
EU Target List
The European Commission, which coordinates EU trade policy, will propose to members late Monday in response to Trump’s steel and aluminum tariffs, rather than a broader mutual taxation, to pay additional responsibilities.
It will include our meat, cereals, wine, wood and clothing, as well as chewing gum, floss, vacuum cleaners and toilet paper.
One product that has received more attention and exposed discord among the group is bourbon. The commission has designated 50% tariffs, prompting Trump to threaten 200% anti-propaganda for EU alcoholic beverages if the group continues to move forward.
Wine exporters France and Italy both expressed concern.
In any case, the initial EU anti-sponsor will vote on Wednesday unless, in unlikely circumstances, 65% of the EU’s population, which has a qualified majority of 15 EU members who oppose it.
They will enter the troops in two stages, on April 15 and a month later the rest.
Committee Chairman Ursula von der Leyen will also have separate discussions with the CEO of the Steel, Automotive and Pharmaceutical sector on Monday and Tuesday to assess the impact of tariffs and determine what to do next.
FAQ
Q1. Who coordinates EU trade policy?
A1. The European Commission coordinates EU trade policy.
Q2. Where will the EU target the United States?
A2. The EU will include our meat, cereals, wine, wood and clothing, as well as gum, floss, vacuum cleaners and toilet paper.
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