The European Union responded to American steel and aluminum tariffs with its own tariffs on boats and bourbon β and pledges of more to come.
European Union leaders have been clear that they want to negotiate with the United States on trade to avoid a full-blown conflict. But with no deal in sight, officials announced a plan on Wednesday that is meant to hit back hard as steel and aluminum tariffs come into effect.
President Trump has imposed 25 percent tariffs on all global steel and aluminum imports, including products that contain those metals, such as cookware and window frames. Given that breadth, the European Union said that the U.S. levies might affect some 26 billion euros β $28 billion β of the blocβs exports.
So the bloc announced a plan that is meant to retaliate in equal measure.
The response will come in two parts. The bloc had increased tariffs on a range of goods in retaliation to U.S. measures during Mr. Trumpβs first term, but they were suspended under the Biden administration. That suspension will be allowed to lapse on April 1, increasing tariffs on billions of euros worth of products that include boats, bourbon and motorcycles.
The blocβs second step, it said, would be to place tariffs on about β¬18 billion worth of additional products. Representatives from countries across Europe will consult for two weeks before officials finalize the list of affected products.
βWe need to avoid an escalationβ
President of the European Council, AntΓ³nio Costa, stated that the EU is open to negotiations with the U.S. on tariffs, emphasizing the importance of avoiding escalation. He noted that if the U.S. believes there is a real issue, the best way to address it is through discussions. He also stressed that the EU aims to prevent the escalation of trade disputes and is ready to continue dialogue on tariff issues.
