EU retaliates against Trump's tariffs with proposed 25% counter-tariff
What's the story
In retaliation to US President Donald Trump's reciprocal tariffs, the European Commission has proposed a 25% counter-tariff on a range of US products.
EU member states are likely to approve the plan later this week, according to documents seen by Reuters.
The new tariff will come into effect on April 15, although most duties won't be collected until mid-May.
Some tariffs will be imposed on May 16 and others later in the year, on December 1.
Trade response
EU's trade chief downplays impact of proposed counter-tariffs
On Monday, EU trade chief Maros Sefcovic played down the possible effect of these counter-tariffs. He said their impact would be less than the previously announced €26 billion (roughly $28 billion) figure.
The European Commission did not comment on the matter. However, it is important to note that the commission has already tightened existing safeguards on steel since April 1 and is mulling import quotas for aluminum too.
Targeted goods
Proposed counter-tariffs to target a wide range of US products
The European Commission has listed several product categories for the proposed counter-tariffs. These include diamonds, eggs, dental floss, sausages, and poultry.
The tariffs on almonds and soybeans will be effective from December 1.
However, bourbon, wine, and dairy have been dropped from the initial list that was under consideration in March.
This comes after Trump threatened 200% counter-tariff on EU alcoholic drinks if the bloc went ahead with proposed 50% tariff on bourbon.