Latest News

Which U.S. products will be hit by tariffs in the EU?

Next Tuesday, the European Union will introduce countermeasures against President Donald Trump’s steel and aluminum tariffs by imposing additional duties on imports worth 23 billion dollars (21 billion euros) from the United States.

Trump has a policy of imposing tariffs on countries that he believes impose high barriers against U.S. imports. The tariffs will be 25% for steel, aluminum and cars as well as a new, broader 20% tariff for most other goods.

The counter-tariffs approved on Wednesday are specifically a response to the U.S. Metals Tariffs that were imposed by the U.S. on March 12. The EU is still assessing the best way to respond to "reciprocal" car tariffs and other broader tariffs.

The EU plan is divided into three phases. Most tariffs will not be in effect until May.

APRIL 15, 2019

The first phase will include 3.9 billion euro worth of U.S. goods, such as steel, aluminium, rice, motorcycles and motorboats, dishwashers and washing machines, orange juice, and corn (maize).

This is a re-imposition of the tariffs that were imposed by the EU in 2018, when Trump imposed a less comprehensive set of tariffs on European products made of steel and aluminum. Both sides lifted the tariffs as part of a truce under U.S. president Joe Biden.

This time, U.S. whisky is not included, as some countries were worried about retaliation by the U.S. against European wine imports.

Diamonds are subject to a 10% tariff, but some products such as most of the affected ones will be charged 25%.

May 16th

The new U.S. tariffs on metals are much more extensive than those of 2018. Therefore, the EU's trade policy coordination commission compiled a list of U.S. goods that would be subject to additional retaliation. The list originally included 21 billion euros worth of U.S. imports, but this was reduced to 17 billion euro after removing dairy products, wines and spirits.

On May 16, additional 25% tariffs will be applied to 13.5 billion euro worth of goods. These include poultry, beef and fruit as well as cereals like wheat, barley, and oats. Other items include wood, plastics carpets clothing glassware tools and chewing gum.

DUE DECEMBER 1, a further 3.5 Billion Euros of U.S. products, including soybeans and almonds, will be subject to duties.

Which companies could be affected?

EU officials are hoping that a broad range of products will make U.S. companies press Washington to reduce its trade war.

U.S. producers of the affected goods include Whirlpool , Stanley Black & Decker, Mohawk Industries , Harley-Davidson, Ralph Lauren, Tyson Foods and Archer-Daniels-Midland ($1 = 0.9045 euros) (Reporting by Philip Blenkinsop;)

(source: Reuters)