European Union is preparing further tariffs for US goods
The European Union plans to raise additional tariffs on US goods worth around 100 billion euros if the ongoing trade talks should not lead to a result that is satisfactory for the Union, according to the matter.
The proposed retaliation measures will be communicated to the Member States on Wednesday, and the consultations will take a month before the list is finally determined, said the people who spoke on the condition of anonymity because the plans are private. The list could still change during this time.
Irrespective of this, the European Commission, the EU’s executive body responsible for trade issues, will be presented to the United States this week to get the negotiations going, as Bloomberg previously reported. The EU is expected to propose, among other things, the reduction of trade and non-tariffs and the promotion of investments in the USA.
Negotiations between the EU and the United States, which started seriously last month, have hardly made any progress, and the majority of the American tariffs are expected. The EU announced on Tuesday that Trump’s ongoing trade investigations will increase the number of goods affected by tariffs to 549 billion euros.
A spokeswoman for the Commission rejected a statement.
All options are on the table
The new list of EU counter-measures is added to the 21 billion euros in US goods that have already been affected by the EU tariffs, which were introduced to Trump’s 25 percent tariffs to steel and aluminum exports. At the beginning of the month, the EU had agreed to postpone the implementation of these measures by 90 days after the United States reduced its so-called mutual customs set to most EU exports from 20 percent to ten percent while negotiations were running.
Trump has also introduced an inch of 25 percent on cars and some car parts and initiated examinations that could lead to tariffs on the import of wood, medicinal products, semiconductors, critical minerals and trucks.
« These import duties are unjustified and damage to the economy on both sides of the Atlantic, » said the EU trade commissioner Maroš Šefčovič in front of legislators in Strasbourg on Tuesday. « This situation is unacceptable and we cannot afford to remain idle. »
The Commission has explained that in response to Trump’s tariffs, all options are on the table and that future measures aim to limit services and could limit the export of certain goods, as Bloomberg previously reported.
Airbus supports European tariffs on Boeing
According to the CEO of Airplane Mauer Airbus, Guillaume Faury, Europe should take mutual measures against Boeing Co.
« Europe is in negotiations, and if these negotiations do not lead to a positive result, I imagine that – and we hope that – mutual tariffs will be imposed on airplanes in order to force a higher level of negotiation and the return to the 1979 agreement, » he said in front of reporters at an event in Paris. « This would be an advantage for both American and European industry ».
Faorm referred to the Agreement of the World Trade Organization (WTO) via civil aircraft, which the aviation industry has largely excluded from imported duties to commercial aircraft and parts for more than four decades. He did not call Boeing, but the US manufacturer is an important exporter to Europe and would feel most of the tariffs made to planes produced in the USA.
The Airbus CEO also did not say whether it was a political answer from the European Union, where Airbus is based in Toulouse (France), or in general.
Airbus gets the new measures to feel, while the European countries are retaliating with retaliation and initially protect the arch -rival Boeing from additional tariffs on aircraft that he delivers to Europe.
The aviation industry tries to adjust to the US surcharges that have penetrated the supply chain of the aerospace industry, and transactions that have been duty-free in the past. Boeing is affected by China’s retaliation measures, and managers from US airfare companies such as the engine manufacturer General Electric Co, an important supplier from both Airbus and Boeing, have been campaigning for the cancellation of the tariffs.
« Airbus is also an actor of the civil aviation industry in the United States, and our imports to the United States from other countries are also punished, » said Faury, adding that the tariffs would have unsettled the industry and have stalled investments.
Buy more US goods
The Commission has offered to abolish all tariffs on industrial goods, including cars, to invalidate one of Trump’s central allegations – that the EU has unfairly trade obstacles. The United States rejected this proposal.
In addition, the EU has offered to buy more US goods such as liquid gas or soybeans – an option that contributed to reducing the tensions between the two long -term allies during Trump’s first term.
Instead, the United States focused on topics such as EU regulations for the control of technology companies, digital taxes and EU VAT value tax. So far, the Commission has refused to negotiate its technology regulations and claims that its VAT is a fair, non -discriminatory tax that applies equally to domestic and imported goods.
The United States currently raises tariffs of ten to 25 percent on EU exports worth 380 billion euros, which corresponds to around 70 percent of its total exports on the American market. The EU has declared that it will not strive for retaliation measures in the form of counter -tariffs and instead try to make the greatest possible damage and at the same time minimize the effects on the European supply chain.
When the EU created her first list of goods with which she wanted to react to Trump’s metal tariffs, she aimed at politically sensitive groups of voters in the USA and included goods from Louisiana, the home of Parliament President Mike Johnson.
« Now it is time to clearly act in the interest of the EU and to work on our goal, to maintain a strong and competitive economy as well as a society characterized by cohesion, » said Sefcovic.
