Trade War Between EU And Erupts
Trade War Between EU And Erupts: The European Union has placed tariffs on iconic US products including bourbon, jeans and motorcycles on Friday in its opening salvo in a trade war with President Donald Trump.
The tariffs, according to the EU´s official journal, will further fuel agitations on world stock markets that are already alarmed by trade tensions between the United States and China.
Customs agents across the Europe´s colossal market of 500 million people will now impose the duty, hiking prices on US-made products in supermarkets and across factory floors.
Brussels imposed the raft of duties on US products worth 2.8 billion euros ($3.3 billion) in a tit-for-tat response to Trump´s decision to slap stiff tariffs on European steel and aluminium exports.
EU Trade Commissioner Cecilia Malmstrom said this week that the 28-nation bloc was “left with no other choice” but to impose tariffs of its own after the “unilateral and unjustified decision of the US.”
Together with US tariffs against Mexico and Canada, the trade battles have raised the spectre of a global trade war, spooking financial markets that fear major consequences to the global economy.
“We have a trade war — and it´s an escalating trade war,” SEB chief economist Robert Bergqvist told in an interview.
Brussels first drew up the list in March when Trump initially floated the 25% tariffs on steel imports and 10 percent on aluminium, which also target Canada, Mexico and other close allies.
Cranberries, cranberry juice, orange juice, sweetcorn and peanut butter are among the other food products targeted.
The list also hits clothing along with bed linen and men´s leather footwear, eye make-up and lipsticks, plus a host of steel products.
Here are some highlights from the EU´s list:
Steel
Dozens of steel products are targeted, including bars and rods, rolled steel, stainless steel, wire, tubes, chain, pipes and scaffolding, as well as kitchen appliances, ovens, ladders and washbasins.
Clothing and fabrics
Clothing includes “trousers and breeches of cotton denim” — better known as jeans — along with bed linen and men´s leather footwear. Swimwear and underwear are excluded.
Cosmetics
Eye make-up and lipstick are listed as together they accounted for more than 280 million euros worth of EU imports from the US in 2017.
Transport
Motorbikes and mopeds “with reciprocating internal combustion piston engines” of 500 cc capacity and above includes most Harley-Davidson models. Boats, yachts, canoes and rowing boats are also on the list.
Food and drink
Maize, rice, cranberries, cranberry juice, orange juice, sweetcorn and peanut butter are among the food products targeted.
The list also covers bourbon whiskey — the EU imported some 415 million euros worth from the US in 2017, along with another 150 million euros worth of whiskey without the “bourbon” designation.
Other
Cigarettes, cigars, cheroots (a type of thin cigar) and other types of tobacco are also included.
Transatlantic ties are at their lowest level for many years due to rows over a host of issues including the tariffs, the Paris climate agreement, the Iran nuclear deal and the new US embassy in Jerusalem.
This list was already sent by the EU to the World Trade Organization (WTO) on May 18, in anticipation of Washington´s decision to go through with the tariffs.
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