A Looming Trade Storm: EU Commissioner Issues Alarm on Potential Huge US Tariffs
U.S. Tariffs Warned to be Steep by EU Commissioner - U.S. tariffs face cautious caution from EU Commissioner
In a frank address at the European Parliament in Strasbourg, EU Trade Commissioner Maros Sefcovic sounded the alarm about possible additional US tariffs on EU goods. The United States is actively conducting several investigations, justifying them under the umbrella of national security, said the top politician. If all these investigations bear fruit, roughly $170 billion more worth of exports would be ensnared.
This would escalate the total value of EU exports to the USA subject to tariffs to an alarming $549 billion, Sefcovic warned. Such a move would represent a significant escalation, he added. Of note, the US investigations, according to the EU Commission, pertain to semiconductors, pharmaceuticals, and raw materials.
Let's delve into the specifics of these sectors:
Semiconductors
Currently, imports of semiconductors, in addition to other electronics, have been granted a reprieve from new tariffs imposed by the U.S. This temporary exemption is part of a broader strategy to cushion the impact of tariffs on critical components [2]. However, sector-specific measures are anticipated to be announced in the ensuing months, possibly altering the situation and affecting the global semiconductor supply chain [2].
Pharmaceuticals
Pharmaceutical goods are also shielded from increased tariffs at the moment. This exemption aims to safeguard consumers and ensure the continued availability of essential medications [2]. The exemption underscores the significance of pharmaceuticals in bilateral trade, ensuring that essential medicines remain accessible amid broader trade tensions.
Raw Materials
Refined and raw mineral products have so far been spared the brunt of additional tariffs. This decision underscores the critical role these materials play in industries such as manufacturing and construction [2]. It seems that these sectors are under close scrutiny, with ongoing assessments that may lead to changes in tariffs in the future, depending on the outcome of trade negotiations and evaluations.
In response to these developments, the EU has postponed its countermeasures against U.S. tariffs, thereby temporarily halting countermeasures targeting around €8 billion worth of U.S. goods, initially scheduled to recommence on April 15 [3][5]. The EU had earlier approved new countermeasures targeting approximately €18 billion of U.S.-origin products in retaliation to U.S. tariffs on steel and aluminum [5].
The U.S., on the other hand, has imposed a 10% general tariff on imports from most countries, with additional tariffs specific to particular countries or products. Some tariffs, including those on EU-origin goods, have been put on hold temporarily [4][5].
The trade conflict remains a complex, evolving issue, with both sides seeking to protect their industries while striving to resolve disagreements through diplomacy.
- The European Parliament in Strasbourg was the venue for EU Trade Commissioner Maros Sefcovic's warning about potential massive US tariffs on EU goods.
- Sefcovic highlighted that if all ongoing US investigations result in increased tariffs, the total value of EU exports to the USA subject to tariffs would reach $549 billion.
- The US investigations involve semiconductors, pharmaceuticals, and raw materials, sectors that currently have temporary exemptions from higher tariffs.
- The EU has temporarily halted its countermeasures against US tariffs, aiming to resume them on around €8 billion worth of US goods on April 15, depending on the outcome of the trade negotiations and evaluations.
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