Background on Key Figures and Relevance
The European Union (EU) has threatened to impose tariffs on US products worth €95,000 million (over $100,000 million), particularly automobiles and aircraft. This move comes as the EU and the United States continue negotiations, with the EU expressing its commitment to finding mutually beneficial agreements.
Ursula von der Leyen, President of the European Commission, has emphasized that the EU remains “fully committed” to negotiating results with the United States. However, she also acknowledges that preparations are underway for all possible outcomes.
EU’s Actions and Impact
The EU has initiated a public consultation process regarding a list of US products that could be subject to tariffs if negotiations fail. This 128-page list includes various goods such as aircraft, automobiles, plastics, chemicals, human hair, and nuts. Notably, the list also includes bourbon, despite previous exclusions due to potential retaliation from President Trump against European wines.
Maros Sefcovic, the EU Commissioner for Trade, informed the European Parliament that 70% of the EU’s total exports face tariffs ranging from 10% to 25%. With ongoing US trade investigations in various sectors, approximately €549,000 million (97% of the total) of EU exports to the US could eventually face tariffs.
EU’s Complaint to the WTO
In addition to proposing tariffs, the EU plans to file a complaint with the World Trade Organization (WTO) regarding the US’s implementation of reciprocal tariffs. The EU asserts that these actions blatantly violate fundamental WTO rules and cannot be unilaterally disregarded by any member, including the United States.
Key Questions and Answers
- What products will be affected by the proposed tariffs? The list includes automobiles, aircraft, plastics, chemicals, human hair, nuts, and bourbon.
- Why is the EU taking these actions? The EU aims to protect its industries from unfair trade practices by the US and seeks mutually beneficial agreements.
- What is the EU’s complaint to the WTO about? The EU contends that the US’s reciprocal tariffs violate WTO rules and cannot be unilaterally ignored by any member.
- How much of the EU’s exports to the US could face tariffs? Approximately €549,000 million (97% of the total) of EU exports to the US could eventually face tariffs due to ongoing US trade investigations.
