European Union's Swift Response to Trump's Tariffs: A Trade Battle Rekindled
The European response was swift. No sooner had Donald Trump confirmed his intention to impose a 25% tax on steel and aluminum imports than the European Commission launched its firm and proportionate countermeasures. The Commission estimates that the new tariffs imposed by Washington will affect $28 billion worth of goods. In retaliation, Brussels has announced its intention to tax up to the same amount on imports of American goods, totaling $26 billion.
The European Union (EU) deeply regrets the White House's decision, stated Ursula von der Leyen, the Commission president. "Tariffs are taxes. They are bad for business and worse for consumers. Jobs are at stake. Prices will go up. Nobody needs that on both sides, neither in the European Union nor in the United States," she continued.
According to the Commission's calculations, the new surcharges imposed by Washington will cost American importers an estimated $6 billion. During his first term, Trump had already increased tariffs on steel and aluminum imports but only by 10%, and this measure did not concern processed products. At that time, the Commission took retaliatory measures against bourbon and Harley-Davidson products, but those did not have enough time to take effect.
At the end of 2021, following the election of Joe Biden, Brussels and Washington had put their trade dispute on pause, hoping to reach an agreement before March 31 of this year. Unfortunately, negotiations failed to yield results, reigniting tensions between these economic powerhouses. This ongoing trade battle highlights the fragile nature of international trade relations and the potential consequences for businesses and consumers on both sides of the Atlantic.
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