EU and US Trade Tensions: What's at Stake?
The European Union is planning to retaliate against the United States with tariffs on a range of products, including:
- Aircraft
- Cars
- Machinery
- Chemicals
- Plastics
- Medical devices
- Electrical equipment
- Industrial goods
The total value of these goods is around €95 billion, less than previously proposed.
Context and Strategy
The EU's move comes in response to the US threat to impose a 30% tariff on EU exports starting August 1 if no trade deal is reached. The EU aims to:
- Level the playing field
- Protect its industries from US tariffs
- Consider alternative sources of supply
- Assess the risk of relocation
Approval and Negotiations
EU member countries must formally approve the measures for them to take effect. The EU has postponed the first round of measures, covering €21 billion in US goods, until August 6 to allow more time for negotiations.
Targeted Industries
The EU's strategy focuses on products where the impact of US tariffs is most felt, such as:
- Aircraft
- Cars
- Machinery
Response to US Trade Policies
The EU's retaliatory measures are a response to the US's aggressive trade policies, which have affected the EU's economy. The EU is determined to:
- Protect its industries
- Level the playing field
- Stand up for its interests
The outcome of these trade tensions remains uncertain.
