EU Strikes Back: Tariffs Escalate Global Trade Tensions

The European Union plans to impose countermeasures against U.S. tariffs starting next week in retaliation to President Trump's trade policies, which include tariffs on steel, aluminum, and other goods. This step aligns the EU with China and Canada in the escalating global trade conflict.

The European Union is gearing up to implement its first countermeasures against the United States' trade tariffs implemented by President Donald Trump. This development aligns the EU with China and Canada in escalating the global trade conflict. The 27-nation bloc approved these measures on Wednesday, following the effect of Trump's 'reciprocal' tariffs globally.

The tariffs imposed by the United States mean the EU now faces 25% import duties on steel, aluminum, and cars, with broader tariffs of 20% on almost all other goods. In response, the EU will implement a 25% duty on a variety of U.S. imports starting next Tuesday. The list includes items like maize, wheat, motorcycles, and clothing, totaling approximately 21 billion euros in yearly trade.

The EU's retaliatory tariffs will be phased in three stages throughout the year. The European Commission has noted that the countermeasures could be suspended if the U.S. agrees to a fair and balanced negotiation. This decision comes despite Hungary's opposition, with France and Italy expressing concern over potential impacts on wine exports, following Trump's threat of a 200% tariff on EU wine and spirits.

(With inputs from agencies.)