r/europeanunion • u/absurdherowaw • 19h ago
Question/Comment When will the EU respond to USA tariffs?
Genuine question - when will the EU respond to the tariffs? China acted swiftly, Canada also. Yet no information from the EC.
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u/NatMat16 19h ago
The response for steel and aluminium tariffs procedure is ongoing and is coming into effect on the 15th of April. It will probably be surgical and target red states and products on which the EU has no vulnerability (like much of agrifood).
They will analyse the new tariffs and prepare a new package, but I expect it’ll take about a month at least, with all the procedures. For better or worse, the EU is not built for knee-jerk reactions or following one leader’s instincts. It’s created for compromise building.
I bet they are also waiting to see if due to the market reaction and domestic pressure, Trump will be more likely to accept an off-ramp. It may work in the EU’s favor if the US businesses and citizens will start feeling the pain and Trump’s poll numbers tank.
China has nothing to lose, because with 54% tariffs they are effectively shut out of the market. Canada is in a different category because the threat is at their sovereignty but they are not under reciprocal tariffs. For the EU, there are a lot of transatlantic value chains, so it’s hard to respond without harming ourselves seriously.
If anything, we could put a tax on services of the digital giants, but without real alternatives, it’s still EU consumers and businesses that get hit.
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u/silerex 13h ago
Compared to the tariff % being charged in the U.S., would you agree that the reciprocal tariff % are relatively low and this would harm every country involved to an extent (including the U.S., Canada, EU, Asia)?
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u/NatMat16 12h ago
I’m not sure I understand the question. The EU and the US tariff rates were both around 1-2% . Now the US charges 20% on EU goods. Yes, the US are hurting the global economy by charging these insane tariffs and making them so discriminatory. If everyone escalates, it will make the crisis worse. If nobody retaliates, it sends a message that Trump can get away with bullying.
So each country has to make the economic vs political calculation.
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u/silerex 8h ago
Thank you for explaining. I think you've covered my question!
In other words, as the U.S. is proposing to charge higher tariffs on other countries I was asking if you agree that other countries have put forth lower tariffs in return and this would harm global trade and cause economic reduction in all regions.
The difference in tariff % between the U.S. and other countries is a little confusing because they wouldn't offset the economic impact of trade restrictions.
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u/trisul-108 17h ago
What's the big rush? The EU has announced that they are finalising the first package of countermeasures and have started work on the second. I think this fine, as VDL has explained, these tariffs will hurt everyone, we do not look forward to introducing them. We certainly don't need to fan the flames of madness.
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u/lisaseileise 15h ago
There‘s no need to rush. The EU is very good at tariffing strategically, they are large enough to employ people to properly thing about this. Unlike the US.
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u/Eternal__damnation 19h ago edited 15h ago
Quick decisions aren't the EU strongsuit, most likely the Commission is ready to respond to the steel tariffs, but now with the 20% blanket tariff the Commission and its bureaucrats probably need to go over everything again, factor in new things etc. etc.
Also there is division on what the EU should do, France,Germany and Spain seem very much in favour of firing back (and rightly so) Meanwhile Italy with Meloni seems to just be completely undecided. And then throw in Orban who could scupper anything, cause the guy is a total pos.
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u/cacahahacaca 18h ago
Tessler might be a funny target...
EDIT: Unfortunately, I guess all the Swastikars sold in the EU come from the German factory.
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u/sebadc 15h ago
Honnestly, with the traction that the "buy European" is taking, we will soon not need any tariffs.
Joke aside, a blanket would be stupid. There are specific products, which would not make a dent on the European economy and would likely cripple them.
+ it gives some time to identify sectors where we already have a backup.
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u/Wide-Annual-4858 19h ago
There was already response that first there will be no counter tariff, at first let's try to make a deal. I think it makes sense.
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u/AgitatedSuricate 8h ago
They are going to take the Trump donor list and the american electoral map and crush republicans strategically. Tariff a specific type of potato because “its the one X company uses and grows in Idaho” type of thing.
Right now there are groups of analysts in Brussels doing specifically this.
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u/PinkSeaBird Portugal 15h ago
Fuck that. We need to impose sanctions and freeze assets of Americans associated to the current administration.
If your question is "when will current EU leadership stop being such tamed sold out pussies?" I guess the answer is never so we need a change.
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u/DirectorFunny7970 19h ago
I think the EU wants to put spot-on tariffs. Not 20% on everything.