European Union approves first set of retaliatory tariffs on U.S. imports

The European Union on Wednesday voted to approve its first set of retaliatory measures to counter tariffs imposed by the U.S. on steel and aluminum.

The European Commission, the bloc’s executive arm, said duties would start being collected on a first tranche of tariffs on U.S. imports from April 15, with a second set of measures following on May 15.

According to a draft document seen by CNBC in March, the tariffs target a wide range of goods, including poultry, grains, clothing and metals. The EU has not released a final list of impacted products, and declined to comment further on Wednesday.

The 27-nation bloc had warned it would act to protect European business and consumers after U.S. President Donald Trump imposed 25% duties on the metals.

“The EU considers US tariffs unjustified and damaging, causing economic harm to both sides, as well as the global economy. The EU has stated its clear preference to find negotiated outcomes with the US, which would be balanced and mutually beneficial,” the European Commission said.

“These countermeasures can be suspended at any time, should the US agree to a fair and balanced negotiated outcome,” the EC said in a statement.

The EU also faces tariffs of 20% on almost all its U.S. imports, as part of Trump’s targeting of over 180 countries and territories, as announced by the White House leader on April 2.

European Commission President Ursula von der Leyen at the time said the EU was ready to retaliate unless negotiations with the U.S. administration were successful.

“We are prepared to respond,” she said, adding that the EU was preparing for further countermeasures to protect its interests and businesses. But, von der Leyen also called for talks with the U.S., saying it was “not too late to address concerns through negotiations.”

Maros Sefcovic, the EU’s commissioner for trade and economic security, saidMonday that the U.S. tariffs are impacting 380 billion euros ($420.45 billion) worth of Europe’s exports to the United States, amounting to around 70% of total exports.

“To put it in perspective, that’s over 80 billion euros in duties, an eleven-fold jump from the 7 billion [euros] the U.S. currently collects,” he added.

Countries around the world are scrambling to formulate their response to the duties, which have sparked global market chaos. China — slapped with a total tariff on its goods of 104% — on Wednesday announced tariffs on U.S. goods entering China would rise to 84% from 34% starting April 10.

By CNBC News