1 week Ago
BRUSSELS, April 9 — The European Commission bowed to pressure from EU countries to water down countermeasures against US President Donald Trump’s tariffs on steel and aluminium, removing US bourbon from its list of targets. The European Commission had planned to impose extra duties on up to €26 billion (RM127.76 billion) of US imports in response to US 25 per cent tariffs on steel and aluminium and drew up a list of products in mid-March.
This is the current plan, on which EU members will vote on Wednesday. What is the EU responding to? Trump reinstated 2018 tariffs on steel and aluminium semi-finished and finished products, such as steel pipes and tin foil. Washington has also raised the rate applicable to aluminium to 25 per cent from 10 per cent, removed multiple exemptions and extended the tariffs to cover products made from the metals, including cookware, window frames, machinery, gym equipment and furniture.
Which measures will EU impose first? The EU responded in 2018 to Trump’s tariffs, which it said affected €6.4 billion of EU metal shipments, with duties on €2.8 billion of US imports.
Tariffs on a further €3.6 billion of imports were due to take effect three years later, but were suspended as President Joe Biden and the bloc agreed a truce. These tariffs will be reapplied on April 15, targeting US products including steel and aluminium, motorcycles, motorboats and orange juice, but no longer reapplied to bourbon.
Trump had threatened 200 per cent tariffs on EU alcoholic drinks if the EU targeted US whiskey, prompting concern from France and Italy, Europe’s largest wine exporters The tariff rates vary from 10 per cent, such as for diamonds, to 25 per cent for most products. Which new products are the EU targeting? The commission, which coordinates EU trade policy, also drew up a new list of US imports valued at €21 billion and planned to narrow them down to €18 billion worth on which to impose tariffs. These tariffs of 25 per cent are to be imposed on May 16.
However, the proposal on Monday removed dairy products, spirits and wines from the initial list. The list still includes poultry, other meat, fruit, cereals, vegetable oils, beer, wines, wood, carpets, clothing and glassware, as well as chewing gum, dental floss, other precious stones, lawn mowers, vacuum cleaners and toilet paper. The list also shows that EU tariffs will still apply to soy beans and almonds, but only from December 1.
— Reuters.
