Tit-for-Tat Trade War: EU Tables Counter As Trump's Tariffs Take Effect
EU Countermeasures List - China Responds to Trump's Tariffs - EU Retaliatory Tariffs - Trump Receives Proposed Counter-measures from China
So long, Jack Daniel's? A list of items bracing for EU countermeasures against the ongoing trade dispute with the States sees bourbon whiskey finally being dropped, EU whispers suggest. This decision comes ahead of the EU Commission's decision-making session on this very Wednesday.
Buoyed by the recent imposition of US tariffs on steel and aluminum imports, which have been in play for about a moon's rotation, the EU has devised special tariffs as response. These tariffs, according to EU rhetoric, have the potential to impede exports valued at 26 billion euros and might rack up an extra 6.5 billion euros in US coffers.
All's Fair in Love and Trade Wars
The reason behind the removal of bourbon from the line of fire? A strong lobbying push by none other than our wine, champagne, and spirits connoisseurs from France and Italy. In the face of such a threat from Trump, the US President had ostensibly promised to impose 200% counter-tariffs on these very products from the EU, if the union proceeds with its plans.
The forthcoming EU tariffs are foreseen to be somewhat smaller in scope compared to the US tariffs on manufactured metals. The EU brass also remains open to talks and might negotiate a relaxation of the US tariffs, should the US indulge in a little more whiskey and less steel.
"America needs our liquor, buddy!"
According to reports, Trump smirked at a meeting with Israeli PM Benjamin Netanyahu, "We have a $350 billion trade deficit with the EU, and that'll dwindle in the blink of an eye." He continued, "They've gotta buy our energy to balance that out. They need it - we're ready to supply."
Now just imagine one week's worth of gas sales balancing a whopping $350 billion deficit - spectacular, isn't it? But the EU Commissioner has retorted, "We're already getting half our LNG gas from the US, so the proposition's choice, not necessity."
In a more diplomatic tone, the spokeswoman adds, "We're prepared to converse and compromise - but our energy resources should stem from a variety of sources [to avoid excessive dependence]."
When asked whether the EU's offer to scrap all tariffs on automobiles and industrial products was insufficient, Trump said, "No, that's not cutting it." However, EU Commission President Ursula von der Leyen had previously announced such an offer in an attempt to avoid the escalating trade dispute.
Fanning the Flames of Tensions
The U.S. administration isn't the only one heating things up – the Sino-American relationship remains tense. Trump threatened expanded tariffs of 50% on Chinese imports, if China doesn't withdraw its recently announced 34% counter-tariffs.
China's Ministry of Commerce has sent a clear message, "If the U.S. continues to aggravate the trade issue, China will resolutely implement countermeasures to protect its own rights. If the U.S. continues on this path, China will journey with it until the end." This statement can be construed as a sign of an unyielding commitment to fight the trade war until resolution.
It appears that both Brussels and Beijing are maintaining open lines of communication, as EU Commission President von der Leyen and Chinese Premier Li Keqiang held a constructive telephone conversation earlier today. China and the EU have scheduled a summit for July.
The DJIEX (Germany's Dax) opened the day slightly higher, sustaining a positive tone from yesterday, currently in the green. However, trade strains remain a point of uncertainty, keeping investors on the edge as Trump's policies push forward in an attempt to right America's trade imbalances and drive production to its shores via tariffs.
- EU
- USA
- Trade War
- Counter-Tariffs
- China
- Donald Trump
- Europe
- Asia
- Global Trade
- Retaliation
- Tariffs
- Industrial Goods
- Automotive Sector
- Energy
- Diplomacy
- Negotiations
- In the midst of the EU's countermeasures against the US, European officials suggested the potential removal of bourbon whiskey from the line of fire, due to an influential lobbying push from France and Italy, as a retaliation to the US's 200% counter-tariffs on wine, champagne, and spirits.
2.Parallel to the EU-US trade war, China also threatened expanded tariffs of 50% on US imports, should China not withdraw its 34% counter-tariffs, signifying a firm commitment to fight the trade war until resolution.
- Despite the ongoing trade tensions, EU Commission President von der Leyen and Chinese Premier Li Keqiang held a constructive telephone conversation and scheduled a summit for July, aiming for continued dialogue in resolving global trade tensions.
