With the news of the trade war with China still fresh, a new series of trade war episodes emerged yesterday when the European Commission presented a plan to retaliate against €95 billion worth of US (US) products.
The move comes after the US imposed tariffs of 25% on aluminium, steel and vehicles from the EU since mid-March, as well as a 10% tariff on all imports from the bloc.
More than 70% of EU exports to the US are now subject to tariffs, and this figure could jump to 97% if new US investigations into pharmaceuticals and semiconductors result in additional restrictions.
In response to this trade pressure, the EU is now considering large-scale retaliatory measures against €95 billion worth of US products, involving big names such as Boeing, Bourbon whiskey, food products, automotive and heavy machinery.
EU Commission President Ursula von der Leyen insisted that a deal was still possible for the benefit of consumers and businesses on both sides, but warned that the bloc was more than prepared to deal with any eventuality.
Meanwhile, the list of US products that could be subject to tariffs is now open for industry consultations until June 10, before being approved by EU member states.
The Commission also announced that it would challenge the US tariffs before the World Trade Organization (WTO).
With the embers of the trade war with China still simmering, a new clash between the EU and the US risks triggering a global tariff crisis that could not only threaten the world economy, but could also drag trans-Atlantic trade relations into a more tense situation than ever.
