The European Union (EU) member states are expected to approve a series of retaliatory trade measures against the United States (US) in response to President Donald Trump’s sweeping tariffs on EU and global imports.
The Recorder gathered that the move could escalate the brewing global trade conflict into a full-scale trade war, analysts warn.
The EU’s countermeasures come as President Trump’s new “reciprocal” tariff regime takes effect, imposing duties as high as 104% on certain Chinese goods and up to 25% on EU steel, aluminum, and cars.
Almost all other EU exports to the U.S. face additional levies of 20%, under what Trump describes as a crackdown on “unfair trade practices.”
According to sources in Brussels, the European Commission responsible for setting trade policy for the bloc has proposed its own set of duties targeting a wide range of American exports.
These include motorcycles, poultry, fruits, wood products, clothing, and even dental floss. The proposed tariffs, mostly set at 25%, will cover approximately €21 billion ($23 billion) worth of U.S. goods.
The EU’s retaliatory duties are expected to roll out in three phases: beginning April 15, followed by May 16, and concluding on December 1.
A committee made up of trade experts from the 27 EU member nations is scheduled to vote on the proposal on Wednesday afternoon.
The plan will only be blocked if a qualified majority at least 15 countries representing 65% of the EU’s population votes against it.
However, diplomatic sources suggest the plan is likely to be approved.
France and Italy, both major exporters of wine, had previously expressed concern after Trump threatened a 200% tariff on EU wines and spirits, in retaliation for the EU’s proposed 50% duty on American bourbon.
This EU action comes on the heels of similar retaliatory measures by China and Canada, who have vowed to respond decisively to Washington’s aggressive trade stance.
China, in particular, has pledged to “fight to the end,” following Trump’s decision to nearly double tariffs on a wide range of Chinese imports.
The escalating tit-for-tat between major world economies has rattled global financial markets, with investors fearing disruptions to supply chains, higher consumer prices, and a slowdown in international trade.
Trade experts say the coming weeks will be critical in determining whether diplomacy can prevail or whether the world is headed for one of the most serious trade conflicts in recent history.
