 "To counter Trump tariffs, EU hits where it hurts the most: Red states to draw more levies")
As the world grapples with Trump tariffs, the European Union has found a creative way to counter US levies: To hit America where it hurts the most. The Commission is likely to slap up to 25 per cent tariffs on US exports worth €22.1 billion, according to a report by Politico.
Following the imposition of sweeping 10 percent tariffs that have rocked the global economy since coming into force over the weekend, rates on imports to the United States from exporters like the European Union or Japan rose further at 12.01 am (0401 GMT) Wednesday.
What’s on EU’s tariff list?
A document reviewed by Politico reveals that the bloc is planning to impose tariffs on agricultural and industrial commodities like soybeans, meat, tobacco, iron, steel and aluminum. This is the sector that the US relies on the most when it comes to transatlantic exports.
The US ranks as the second-largest producer and exporter of soybeans globally, and the EU’s tariffs would target an industry already struggling due to China’s retaliatory actions, increasing competition worldwide, and declining prices. Additionally, a significant 82.5 per cent of American soybean exports to the EU are sourced from Louisiana, the home state of House Speaker Mike Johnson.
EU’s tariff list will also impact the export of beef from Kansas and Nebraska, poultry from Louisiana, car parts from Michigan, cigarettes from Florida, and wood products from North Carolina, Georgia and Alabama.
Other items include ice cream from Arizona, handkerchiefs from South Carolina, electric blankets from Alabama, ties and bow ties from Florida and washing machines from Wisconsin.
Although the Commission ultimately removed whiskey from the final draft following effective lobbying by France, Italy, and Ireland, it still included other more targeted items aimed at inflicting the most harm on exporters in Republican states.
Impact Shorts
More ShortsWhen will the tariffs go into effect?
The bloc is set to vote on the new duties on Wednesday, with no major opposition from any member, following which tariffs on goods like cranberries or orange juice will be imposed effective from April 15.
Starting May 16, a 25 percent tariff will be applied to a second round of imports, including steel, meat, white chocolate, and polyethylene. Additionally, a 25 percent duty on almonds and soybeans will be implemented on December 1.
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