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EU Vows Countermeasures to US Tariffs  02/11 06:09

   U.S. tariffs on steel and aluminum "will not go unanswered," European Union 
chief Ursula von der Leyen vowed on Tuesday, adding that they will trigger 
tough countermeasures from the 27-nation bloc. It means iconic U.S. industries 
like bourbon, jeans and motorcycles should beware.

   BRUSSELS (AP) -- U.S. tariffs on steel and aluminum "will not go 
unanswered," European Union chief Ursula von der Leyen vowed on Tuesday, adding 
that they will trigger tough countermeasures from the 27-nation bloc. It means 
iconic U.S. industries like bourbon, jeans and motorcycles should beware.

   "The EU will act to safeguard its economic interests," von der Leyen said in 
a statement in reaction to U.S. President Donald Trump's imposition of tariffs 
on steel and aluminum the previous day.

   "Tariffs are taxes -- bad for business, worse for consumers," von der Leyen 
said. "Unjustified tariffs on the EU will not go unanswered -- they will 
trigger firm and proportionate countermeasures."

   Just as Trump imposed similar tariffs during his first presidency, the EU 
countermeasures could easily amount to those that were used to retaliate then 
if the measures come into force March 12.

   Bernd Lange, the chair of the European Parliament's trade committee, warned 
that previous trade measures were only suspended and could legally be easily 
revived.

   "When he starts again now, then we will, of course, immediately reinstate 
our countermeasures," Lange told rbb24 German radio.

   "Motorcycles, jeans, peanut butter, bourbon, whiskey and a whole range of 
products that of course also affect American exporters" would be targeted, he 
added.

   The EU Commission, which negotiates trade relations on behalf of the bloc, 
said it is not clear what countermeasures would apply, but officials and 
observers have said they would target Republican states and traditionally 
strong U.S. exports.

   In Germany, which is the EU's largest economy, Chancellor Olaf Scholz told 
parliament that "if the U.S. leaves us no other choice, then the European Union 
will react united," adding: "Ultimately, trade wars always cost both sides 
prosperity."

   Trump is hitting foreign steel and aluminum with a 25% tax in the hope that 
they will give local producers relief from intense global competition, allowing 
them to charge higher prices.

   EU Commission vice-president Maro efovi said Tuesday that the 
tariffs are "economically counterproductive, especially given the deeply 
integrated production chains established through our extensive transatlantic 
trade and investment ties."

   "We will protect our workers, businesses and consumers," efovi said, 
but added that "it is not our preferred scenario. We remain committed to 
constructive dialog. We stand ready for negotiations and to find mutually 
beneficial solutions where possible."

   The EU estimates that the trade volume between both sides stands at about 
$1.5 trillion, representing some 30% of global trade. "There is a lot at stake 
for both sides," he told the EU legislature.

   While the bloc has a substantial export surplus in goods, it says that is 
partly offset by the U.S. surplus in the trade of services.

   The EU says that trade in goods reached 851 billion euros ($878 billion) in 
2023, with a trade surplus of 156 billion euros ($161 billion) for the EU. 
Trade in services was worth 688 billion euros ($710 billion) with a trade 
deficit of 104 billion euros ($107 billion) for the EU.

 
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