European Union member states have agreed that the bloc will launch its first countermeasures against tariffs imposed by U.S. President Donald Trump next week, joining China and Canada in escalating the global trade war.
The decision was announced on the same day Trump’s “reciprocal” tariffs on the E.U. and other countries took effect, including massive 104% duties on China, extending his tariff onslaught and spurring more widespread selling across financial markets.
The 27-nation bloc faces 25% import tariffs on steel, aluminum, and cars, and broader tariffs of 20% on almost all other goods under Trump’s policy.
In response, the European Union will implement duties, mostly set at 25%, on a range of U.S. imports starting next Tuesday in response specifically to the U.S. metals tariffs. The bloc is still evaluating its approach to address the car and broader levies.
The targeted U.S. imports include maize, wheat, barley, rice, motorcycles, poultry, fruit, wood, clothing, and dental floss, according to a document reviewed by Reuters.
A committee of trade experts from the E.U.’s 27 members voted on the Commission’s proposal Wednesday afternoon. Diplomats reported that 26 members supported the proposal, with only Hungary opposing it.
The dollar declined against major currencies as U.S. tariffs took effect on Wednesday, raising concerns about their potential impact on U.S. economic growth.
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