EU seeks unity in first strike back at Trump tariffs

European Union countries will question to contiguous a united beforehand successful the coming days against US President Donald Trump’s tariffs, apt approving a archetypal acceptable of targeted countermeasures connected up to $28 cardinal of US imports from dental floss to diamonds.

Such a determination would mean the EU joining China and Canada successful imposing retaliatory tariffs connected the United States successful an aboriginal escalation of what some fearfulness will go a planetary trade war, making goods much costly for billions of consumers and pushing economies astir the world into recession.

The 27-nation bloc faces 25% import tariffs connected steel and aluminium and cars and “reciprocal” tariffs of 20% from Wednesday for astir each different goods.

Trump’s tariffs screen some 70% of the EU’s exports to the United States – worth successful total 532 cardinal euros ($585 billion) past year – with apt duties connected copper, pharmaceuticals, semiconductors and timber still to come.

The European Commission, which coordinates EU trade policy, will suggest to members precocious connected Monday a database of US products to deed with other duties successful effect to Trump’s steel and aluminium tariffs alternatively than the broader reciprocal levies.

It is acceptable to see US meat, cereals, wine, wood and covering arsenic well arsenic chewing gum, dental floss, vacuum cleaners and toilet paper.

One merchandise that has received much attraction and exposed discord successful the bloc is bourbon. The Commission has earmarked a 50% tariff, prompting Trump to endanger a 200% counter-tariff connected EU alcoholic drinks if the bloc goes ahead.

Wine exporters France and Italy person some expressed concern. The EU, whose system is heavy reliant connected escaped trade, is keen to marque sure it has wide backing for immoderate effect so arsenic to support the unit up connected Trump ultimately to participate negotiations.

Luxembourg will earlier connected Monday big the archetypal EU-wide governmental gathering since Trump’s announcement of the sweeping tariffs when ministers liable for trade from the 27 EU members will speech views connected the interaction and however champion to respond.

EU diplomats said the main purpose of the gathering was to look with a united connection of a tendency to negociate with Washington a removal of tariffs, but a readiness to respond with countermeasures if that failed.

“Our biggest fearfulness aft Brexit was bilateral deals and a interruption of unity, but done three oregon 4 years of negotiations that did not happen. Of course, present you person a antithetic story, but everyone tin spot an involvement successful a communal commercialized policy,” 1 EU diplomat said.

Counter-tariffs

Among EU members, there is simply a spectrum of sentiment connected however to respond. France has said the EU should work connected a bundle going well beyond tariffs and French President Emmanuel Macron has suggested European companies should suspend investments successful the United States until “things are clarified”.

Ireland, astir a third of whose exports spell to the United States, has called for a “considered and measured” response, while Italy, the EU’s third largest exporter to the US, has questioned whether the EU should deed backmost astatine all.

“It’s a hard balance. Measures cannot beryllium too soft to bring the United States to the table, but not too tough to pb to escalation,” 1 EU diplomat said.

Talks with Washington to day person not borne fruit. EU trade main Maros Sefcovic described his two-hour speech with US counterparts connected Friday arsenic “frank” arsenic helium told them US tariffs were “damaging, unjustified”.

The archetypal EU counter-tariffs will successful immoderate lawsuit beryllium enactment to a vote connected Wednesday and will beryllium approved but successful the unlikely lawsuit that a qualified bulk of 15 EU members representing 65% of the EU’s colonisation reason it.

They would participate unit successful two stages, a smaller portion connected April 15 and the remainder a period later.

Commission President Ursula von der Leyen will besides clasp abstracted discussions connected Monday and Tuesday with main executives from the steel, automotive and pharmaceutical sectors to measure the interaction of tariffs and find what to bash next. [Reuters]