Washington [US], April 7: European Union countries will seek to present a united front in the coming days against U.S. President Donald Trump's tariffs, likely approving a first set of targeted countermeasures on up to $28 billion of U.S. imports from dental floss to diamonds.
Such a move would mean the EU joining China and Canada in imposing retaliatory tariffs on the United States in an early escalation of what some fear will become a global trade war, making goods more expensive for billions of consumers and pushing economies around the world into recession.
The 27-nation bloc faces 25% import tariffs on steel and aluminium and cars and "reciprocal" tariffs of 20% from Wednesday for almost all other goods.
Trump's tariffs cover some 70% of the EU's exports to the United States - worth in total 532 billion euros ($585 billion) last year - with likely duties on copper, pharmaceuticals, semiconductors, and timber still to come.
The European Commission, which coordinates EU trade policy, will propose to members late on Monday a list of U.S. products to hit with extra duties in response to Trump's steel and aluminium tariffs rather than the broader reciprocal levies.
It is set to include U.S. meat, cereals, wine, wood, and clothing as well as chewing gum, dental floss, vacuum cleaners, and toilet paper.
One product that has received more attention and exposed discord in the bloc is bourbon. The Commission has earmarked a 50% tariff, prompting Trump to threaten a 200% counter-tariff on EU alcoholic drinks if the bloc goes ahead.
Wine exporters France and Italy have both expressed concern. The EU, whose economy is heavily reliant on free trade, is keen to make sure it has wide backing for any response so as to keep the pressure up on Trump ultimately to enter negotiations.
Luxembourg will earlier on Monday host the first EU-wide political meeting since Trump's announcement of the sweeping tariffs when ministers responsible for trade from the 27 EU members will exchange views on the impact and how best to respond.
EU diplomats said the main aim of the meeting was to emerge with a united message of a desire to negotiate with Washington a removal of tariffs, but a readiness to respond with countermeasures if that failed.
"Our biggest fear after Brexit was bilateral deals and a break of unity, but through three or four years of negotiations that did not happen. Of course, here you have a different story, but everyone can see an interest in a common commercial policy," one EU diplomat said.
Source: Fijian Broadcasting Cooperation
