European Commission President Ursula von der Leyen speaks during a press conference at the Christian Democratic Union (CDU) party’s headquarters in Berlin, Germany, on June 10. The European Commission has the votes to impose retaliatory tariffs against the United States. File photo by Clemens Bilan/EPA
July 24 (UPI) — European Union countries have expressed broad support for one round of 30% retaliatory tariffs if it doesn’t reach a trade deal with the United States.
The European Commission is spearheading the plan, which would see $110 billion in U.S. products get 30% tariffs, two diplomats told POLITICO. Not all products will get the full 30%. The only member country to vote against the tariffs on Thursday morning was Hungary.
The tariffs would not take effect immediately. They will stay suspended until Aug. 7 to allow more time to negotiate a trade deal. They can also be suspended if the commission needs more time.
“The EU is focused on finding a negotiated outcome with the U.S.,” trade spokesperson Olaf Gill said.
The list of newly taxed items includes aircraft, cars and car parts, orange juice, poultry, soybeans, steel and aluminium, and yachts.
Bourbon was also on the list but France and Ireland had lobbied hard against it. They fear that the United States will respond by adding wine and spirits to the items taxed by the United States.
A majority of member states seem willing to use the anti-coercion instrument, a tool of the EU to combat coercion from outside countries. It would allow the EU to put trade restrictions on the U.S. for trying to strong-arm the EU. The restrictions can include tariffs, limiting access to financial markets or intellectual property rights restrictions.
Germany had been resistant to using this measure, but has now joined France, which has been a strong proponent of the ACI.
The United States now imposes 50% on EU steel and aluminium, 25% on cars and 10% on all imports.