EU Strikes Back with Counter-Tariffs on U.S. Goods

The European Commission announced 25% counter-tariffs on various U.S. goods in reaction to President Trump's tariffs on steel and aluminum. Key affected items include diamonds and soybeans, though bourbon and wine were removed from the list. The tariffs will be phased in starting May 16 and December 1.

In a strategic response to President Donald Trump's tariffs on steel and aluminum, the European Commission has proposed 25% counter-tariffs on a selection of U.S. goods. The document, viewed by Reuters, outlines that initial tariffs will take effect on May 16, with subsequent tariffs commencing on December 1.

The range of goods subjected to these tariffs includes items such as diamonds, dental floss, sausages, nuts, and soybeans. However, in a recent announcement, EU trade chief Maros Sefcovic clarified that the economic impact would be less severe than the earlier estimated 26 billion euros.

Notably absent from the list are bourbon, wine, and dairy products. The Commission initially aimed for a 50% tariff on bourbon, a move that triggered a threat from Trump of imposing a 200% counter-tariff on EU alcoholic beverages if the proposal proceeded.

(With inputs from agencies.)