EU Warns of €95 Billion Tariff Retaliation Amid US Trade Dispute

Suspense crime, Digital Desk : The European Union has prepared retaliatory tariffs on American products for the EU's 95 billion euro ($102 billion) mark. This comes after the U.S. placed a 20% tax on almost all EU imports. Washington provided a temporary pause, lowering the number to 10% for a 90-day negotiation period. Still, talks are predicted to break down prior to July, and Brussels is set on countermeasures.  

The European Commission is set to hit American branches such as aviation and automotive with retaliation on the EU list. Targeted goods include:  

Aircraft and aircraft parts (€10.5 billion annually)  

Vehicle parts (€10.3 billion annually)  

Beef, Fish, and Olive Oil  

Various wines  

Metal scrap for the manufacturing of steel  

Comparison wise, these items were aimed for their economic importance, and value in transatlantic trade.  

However, the European Commission maintained pursuing formal complaints against the United States with the World Trade Organization. They claim US tariffs violate international trading laws. In spite of the increased friction, the EU Commission President expressed a reconciliatory attitude towards resolving the dispute, stating that America and Europe would negotiate towards a deal suitable for both sides.

Member States Influence Final Tariff List

Although the proposal initially included products worth €95 billion, the final list is expected to be lower. EU member states continue to protect domestic businesses. France, Italy, and Ireland have already removed some items like wine and bourbon due to their potential exposure to US counter-tariffs.

Existing Measures and Future Outlook

Currently, EU tariffs of 25% on US steel, aluminium, and automobiles are in place. Further foreign levies might affect sectors such as entertainment if the US makes good on its threats to impose taxes on movies produced outside the US.

With ongoing negotiations, the EU is ready for either a handshake or a lengthy tussle. The European Commission seeks to fine-tune the relations while applying pressure at the same time.

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