EU’s Response to Trump’s Tariffs Could Escalate Trade War

The European Union is gearing up for a potential escalation in trade tensions with the United States following former President Donald Trump's proposed tariffs. Reports from multiple sources, including The Economist, The New York Times, France 24, and The Washington Post, indicate that the EU is considering retaliatory measures that could significantly impact transatlantic trade relations.

Trump's proposed tariffs, aimed at protecting American industries, have been met with strong opposition from European leaders who view them as protectionist and detrimental to global trade. In response, the EU is contemplating a range of countermeasures, including imposing tariffs on American goods and seeking support from other global trade partners to pressure the U.S. into reconsidering its stance.

The potential for a full-blown trade war looms large, with experts warning that such a conflict could have far-reaching economic consequences for both continents. The EU's strategy appears to be a calculated move to defend its economic interests while also sending a clear message to the U.S. about the importance of fair trade practices.

• Donald Trump
• European Union
• Trade War

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What are American tariffs?

Industrial tariffs are customs duties on non-agricultural merchandise imports, levied either on an ad valorem basis (percentage of value) or on a specific basis (e.g., $1 per 100 pounds). Approximately 94 percent of U.S. merchandise imports by value are industrial (non-agricultural) goods.

Did Europe have tariffs on US goods?

The EU has agreed to impose retaliatory tariffs on €21bn (£18bn) of US goods, targeting farm produce and products from Republican states, in Europe's first act of retaliation against Donald Trump's tariffs.

What is the EU tariff on US cars?

The EU charges average tariffs of just 1.6 percent on U.S. non-agricultural products, on a trade-weighted basis. But it does charge a higher tariff of 10 percent on imported American cars — although the U.S. is the only G7 country that still pays it because TTIP wasn't concluded.

Does Ukraine have tariffs?

Ukraine imposes several duties and taxes on imported goods: customs/import tariffs, value-added tax (VAT), and excise duties.