The tariff war initiated by US President Donald Trump has sent shockwaves across the world. In response, many countries have begun preparing to retaliate in a similar way as they impose reciprocal tariffs on US goods. In the meantime, the European Union (EU) has reportedly proposed imposing counter-tariffs on certain American goods. EU member nations are set to vote on the proposal on April 9. If approved, the tariffs will come into effect on April 15, 2025. However, most of the duties will be collected between May and December this year.
According to documents cited by Reuters, some tariffs are expected to take effect on May 16, and others will face duties later this year. These include a variety of goods, such as diamonds, eggs, dental floss, and poultry. Notably, some products have been removed from the list following objections from certain member states. Additionally, tariffs on almonds and soybeans will be introduced in December.
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The backdrop to this is Trump’s threat to impose a 20% counter-tariff on EU alcoholic beverages. This move led to heightened tensions among EU member states, particularly France and Italy. On Monday, the European Union announced that it had proposed zero tariffs to avoid a full-scale trade war. Despite this, Trump has already imposed a 25% import duty and an additional 20% tariff on steel, aluminium, and cars imported from the EU.
Trump's Tariff War
On April 2, Trump announced additional customs duties on imports from around 60 countries, including China and India. The US imposed a 34% additional tariff on Chinese goods. In retaliation, China imposed an identical 34% tariff on American imports. Fears of a global trade war have triggered sharp declines in stock markets around the world and are expected to slow down economic growth in the United States.