The European Union is reportedly preparing to implement new tariffs on a range of American exports valued at approximately £85 billion, a move that is anticipated to escalate the ongoing transatlantic trade dispute with the United States. This decision comes amid stalled negotiations between Brussels and Washington, as the European Commission aims to finalise plans to target roughly €100 billion worth of US goods if discussions do not progress satisfactorily.
According to sources cited by Bloomberg, the proposed tariff measures are set to be circulated among EU member states this week. Formal consultations will occur before finalising the list of targeted goods next month. While the specific items under consideration remain confidential at this stage, the imminent proposal reflects an increasing impatience among European leaders regarding the sluggish pace of negotiations that have been ongoing since last month.
European Commission President Ursula von der Leyen has expressed her frustration, suggesting that US President Donald Trump has made a “gigantic miscalculation” in his decisions regarding federal support for science. This commentary follows President Trump’s recent introduction of tariffs aimed at several countries, a move he labelled as "Liberation Day." The tariffs, announced on April 2, target nations he accuses of unfairly impacting the US economy. Notably, China has found itself subjected to a tariff of 0.145%.
Although the UK is not directly mentioned in the new tariff impositions, British exports are expected to be indirectly affected. Key sectors, including automotive manufacturing, aerospace, and whisky, may face challenges should the trade dispute escalate. The introduction of tariffs and continued investigations into critical mineral imports could lead to further tariffs impacting UK goods.
In conjunction with these trade tensions, the White House has framed its recent actions as an essential step toward establishing greater “reciprocity” in global trade relations. Additionally, these developments occur amid renewed tensions between the US and China, as Beijing has countered Trump’s tariffs with its own measures on approximately $80 billion worth of American exports, particularly affecting agricultural, automotive, and energy sectors.
As the situation evolves, the European Commission is also expected to submit a position paper to the United States in an effort to reinvigorate the stalled trade talks.
Source: Noah Wire Services