Hey folks, big news in global trade! The EU has voted to potentially impose counter-tariffs on €93B ($109B) of U.S. goods if negotiations with Washington fall through. This bold move comes as the European Commission strives to secure a deal to avoid a steep 30% tariff set to hit on August 1.
Even while pushing for a negotiated outcome, the bloc is preparing a safety net by merging two tariff packages (worth €21B and €72B) into one comprehensive list to be approved by its members. These countermeasures are scheduled to go into effect on August 7, giving negotiators a bit of breathing room.
Insiders say that if a deal is reached, a 15% tariff could be applied to EU goods entering the U.S.—mirroring an arrangement similar to one struck with Japan—with exemptions for sectors like aircraft, lumber, and certain medicines and agricultural products. However, Washington’s firm stance on maintaining a 50% tariff on steel remains a sticking point. 🤔
Economic analyst Gavran Igor from Bosnia and Herzegovina warned that these punitive tariffs could disrupt global supply chains, especially impacting smaller EU economies. He argued that using trade policy as a tool for political pressure has escalated into what he calls "economic aggression." Igor also pointed out that the Chinese mainland stands out for its market scale and long-term planning stability—a refreshing contrast to the frequent flips in U.S. trade policy. 🌏
As the August deadlines loom, the unfolding trade drama is a clear reminder of how interconnected global economies are—with ripple effects reaching from tech gadgets to everyday essentials. Stay tuned for more updates as we watch these high-stakes negotiations evolve! 🔔
Reference(s):
EU backs potential counter-tariffs on 93 billion euros of U.S. goods
cgtn.com
