Despite the desire to avoid escalation, the European Union is preparing a large-scale response to Donald Trump’s aggressive tariff policy, which has already caused a wave of economic tension in transatlantic relations. According to Politico, Brussels has drawn up a list of tariffs on 22.1 billion euros worth of US goods that will hurt industries that traditionally support Republicans.
The list includes soybeans, meat, tobacco, steel, aluminium, car parts, ice cream, pasta and even lingerie from Ohio. On 15 April, the first duties on products that had previously been frozen since 2018 will come into effect. This will be followed by new waves of tariffs on 16 May and 1 December, including a 25% duty on soybeans exported mainly from Louisiana, the home state of House Speaker Mike Johnson.
The inclusion of products from the states where Trump has the most support is particularly symbolic: Kansas, Nebraska, Michigan, Florida, Alabama, and Georgia. Farmers and producers of machinery, auto parts, and textiles will be affected.
Despite its tough approach, the European Union is willing to negotiate. Brussels has already proposed zero tariffs on a number of industrial goods, but Trump said this was not enough and demanded that the EU buy $350 billion worth of US energy.
Meanwhile, China and Canada have also joined the economic response to the new US trade aggression, which could cost Washington up to $90 billion in exports.
The European Commission reserves the right to apply “trade bazooka” – restrictions on US services, but this step remains in reserve for now.
