Jens Asbjørn Bøgen
The list is meant to warn the U.S. about the possible consequences for the U.S. economy if the ongoing negotiations between the U.S. and the EU does not result in a deal.
The list is meant to warn the U.S. about the possible consequences for the U.S. economy if the ongoing negotiations between the U.S. and the EU does not result in a deal.
EU is ready to fight
The European Commission has launched a public consultation on a list of US imports which could become subject to EU countermeasures, if ongoing EU-US negotiations do not result in a mutually beneficial outcome and the removal of the US tariffs.
218 tightly written pages
You’d have to be super human to get through the entire list as it is 218 pages long and cover U.S. goods $107 billion, but some industries are more at risk of suffering massive losses, if a trade deal is not reached.
Aircraft – $11.9 billion
According to AP, the biggest hit will be taken by manufacturers of aircrafts and parts for aircrafts. The combined tariffs from the EU will amount to almost $12 billion.
Vehicle parts – $11.6 billion
Another industry risking a lot with tariffs from the EU is vehicle manufaturers, especielly those who produce parts. The combined tariffs from the EU will amount to $11.6 billion.
Nuts and dried fruits – $7.3 billion
The food-industry is not safe either with both nuts and dried fruits being on the list. The combined tariffs from the EU will be $7.3 billion if put into effect.
Vehicles – $2.3 billion
Complete vehicles, both cars and vehicles used for farming, are not safe from the tariffs wither. The combined EU-tariffs on this category will amount to $2.3 billion.
Wine, beer, spirits – $1.5 billion
American wine, spirits and beer are also at risk of being hit financially, if the trade war goes on. The combined announced tariffs by the EU will hit American producers in this industry with $1.5 billion.
What Trump did
On “Liberation Day” in early April, Donald Trump imposed a 20 % levy on goods from the EU. EU countered this by drawing up countermeasures, but when Trump suspended the tariffs for 90 days, the EU did the same. The new list is not part of the original countermeasures.
“The EU remains fully committed”
Commission President Ursula von der Leyen, said: “The EU remains fully committed to finding negotiated outcomes with the US. We believe there are good deals to be made for the benefit of consumers and businesses on both sides of the Atlantic. At the same time, we continue preparing for all possibilities, and the consultation launched today will help guide us in this necessary work”.
Pharmaceuticals next battleground
There is a risk of the ongoing trade tensions between the U.S. and the EU to spiral out of control. The U.S. is expected to soon announce tariffs on other goods like pharmaceuticals – a tariff Trump has described as going to be massive.
Coordinating 27 countries
The EU Commission manages trade deals and disputes on behalf of the 27 EU countries. The total population of the EU is 449 million (the population of the U.S. is 340 million).