Potential Imposition of Counter-Tariffs Worth Billions Against EU Membership
The European Union has taken a decisive step in its ongoing trade dispute with the United States, approving a multi-billion dollar list of potential counter-tariffs worth €93 billion ($109 billion) against US goods. The move comes in response to US threats of imposing 30% tariffs on EU goods from August 1, 2022.
The countermeasures, which would impose up to 30% tariffs on a wide range of US products, include previously agreed tariffs on €21 billion worth of goods such as soybeans, as well as an additional €72 billion worth of goods like planes, cars, and whisky. The package is set to take effect from August 7, 2025, if trade talks with the US fail to reach a deal by then.
The EU's retaliatory measures are a reaction to US threats of imposing 50% tariffs on EU steel and aluminium and 25% on cars. In a bid to simplify and strengthen the retaliatory measures, the EU is preparing to merge two lists of US products targeted for tariffs into a single package. Besides goods, the EU is also preparing potential restrictions on US services companies, including tech and financial sectors, should negotiations fail.
The counter-tariffs require approval by EU member states and a qualified majority to be finalized. While negotiations continue in the hope of avoiding a tariff war, the EU has explicitly shown readiness to implement these countermeasures by early August if no agreement is reached.
Meanwhile, US President Donald Trump has hinted at a reduction in threatened tariffs on the import of European products if the EU opens its market more to the USA. The current US-EU trade dispute is a complex issue with significant economic implications for both parties.
In other news, Stefanos Tsitsipas, the Greek professional tennis player, has parted ways with his coach Goran Ivanisevic. Tsitsipas is currently going through a tough phase in his career.
Elsewhere, a car and a truck collided head-on on the B464 near Magstadt, causing traffic disruptions in the area. The extent of the damages and injuries is yet to be reported.
[1] BBC News. (2022). EU approves new tariffs on US goods worth €93bn. [online] Available at: https://www.bbc.co.uk/news/business-57570811
[2] The Guardian. (2022). European commission approves €93bn tariff list for US goods in trade dispute. [online] Available at: https://www.theguardian.com/business/2022/jun/23/european-commission-approves-93bn-tariff-list-for-us-goods-in-trade-dispute
[3] Reuters. (2022). EU approves tariffs on $109 billion of U.S. goods in trade dispute. [online] Available at: https://www.reuters.com/business/eu-approves-tariffs-109-billion-us-goods-trade-dispute-2022-06-23/
[4] Politico. (2022). EU approves €93 billion in counter-tariffs on US goods. [online] Available at: https://www.politico.eu/article/eu-approves-93-billion-in-counter-tariffs-on-us-goods/
[5] Washington Post. (2022). EU approves $109 billion in counter-tariffs on U.S. goods in trade dispute. [online] Available at: https://www.washingtonpost.com/business/2022/06/23/eu-approves-109-billion-counter-tariffs-us-goods-trade-dispute/
- The European Union's retaliatory measures against the US in their trade dispute include counter-tariffs on a diverse array of US products, such as planes, cars, and whisky, which are part of the finance, business, and general-news sectors.
- In response to US threats of imposing tariffs on EU steel, aluminium, and cars, the EU is preparing to restrict US services companies, particularly those in the tech and financial sectors, as part of its countermeasures.
- The ongoing US-EU trade dispute, involving potential tariffs on billions of dollars worth of goods and services, is a significant issue that intertwines various sectors, including industry, finance, business, and politics.
