EU Prepares Retaliatory Measures Against US 10% Tariff Increase

The European Commission has declared its readiness to implement retaliatory measures in response to the recent increase in US tariffs. This move comes as a reaction to the US's decision to impose a 10% reciprocal tariff on imports from nearly every country, a strategy aimed at rebalancing trade. The European Commission President has made it clear that the EU will not hesitate to take action if the US continues with its tariff increases, which have already sparked a retaliatory spiral between the two economic powers.

The EU had previously suspended its steel and aluminum tariff retaliation for 90 days, aligning with the pause on steeper “reciprocal” levies announced by the US. However, with the recent tariff increase, the EU is now prepared to reinstate its retaliatory measures. European financial leaders have called for mutual understanding and cooperation in trade negotiations, but the volatile landscape shaped by the US's tariff threats has made the negotiating process increasingly challenging.

The EU's decision to implement retaliatory measures marks a significant escalation in the ongoing trade tensions between the US and the EU. The EU had previously cancelled other retaliatory levies, but the recent tariff increase has prompted a change in strategy. The EU's retaliatory measures are expected to target US goods, with the aim of pressuring the US to reconsider its tariff policies.

The US's tariff increase has also had an impact on trade relations with China. Following a retaliatory spiral, US tariffs on Chinese goods rose to 145% and Chinese tariffs on US goods rose to 125%. The US has also imposed a 25% tariff on steel, which has been a contentious issue in trade negotiations with the EU. The EU's decision to implement retaliatory measures against the US is likely to further complicate trade relations between the two economic powers, and could potentially lead to a broader trade war.