What's happened
The EU has approved retaliatory tariffs on €21 billion of US goods, targeting products from Republican states. The tariffs, starting April 15, are a response to US steel and aluminum tariffs. The EU emphasizes a preference for negotiated solutions, despite escalating trade tensions.
What's behind the headline?
Key Points of the EU's Tariff Strategy
- Targeted Goods: The EU has selected products that can be sourced from other countries, aiming to minimize domestic impact while inflicting political pain on key Republican states.
- Phased Implementation: Tariffs will be introduced in three phases, with the first set starting April 15, followed by additional rounds in May and December.
- Negotiation Preference: EU officials, including Ursula von der Leyen, have expressed a strong desire for a negotiated settlement, offering a 'zero-for-zero' tariff deal on industrial goods.
- Political Dynamics: Hungary's opposition highlights internal divisions within the EU regarding the approach to US tariffs, with some member states advocating for negotiation over retaliation.
- Future Measures: The EU is considering further retaliatory measures, potentially targeting US tech firms, indicating a willingness to escalate if negotiations fail.
What the papers say
According to Jennifer Rankin in The Guardian, the EU's tariffs are a direct response to what it deems unjustified US tariffs, stating, "The EU considers US tariffs unjustified and damaging, causing economic harm to both sides." AP News reiterates this sentiment, emphasizing the EU's preference for a negotiated outcome. Politico adds that the EU's strategy includes a phased approach to tariffs, with the first round set to take effect soon. The internal EU debate is highlighted by Hungary's opposition, as noted by Rankin, showcasing differing views on how to handle the US's aggressive trade policies.
How we got here
The EU's decision follows US tariffs on steel and aluminum imposed by President Trump in February. The EU aims to counter these tariffs while minimizing economic harm to its own citizens and businesses.
Go deeper
- What products are affected by the new tariffs?
- How might this impact US-EU relations?
- What are the potential economic consequences for both sides?
Common question
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