EU’s Proposal to Impose Counter-Tariffs on American Goods
In response to the tariff war initiated by the United States, several countries have started taking action. The European Union (EU) has now prepared to impose counter-tariffs on several American products. However, this proposal still awaits approval from the EU member countries. If passed, the 25% tariffs could come into effect on some items starting from May 16. These items include diamonds, eggs, dental floss, poultry, and more.
Concerns and Objections Within the European Union
Some EU member countries, such as France and Italy, have expressed concerns about the proposal, especially after President Trump threatened to impose a 200% counter-tariff on European alcoholic beverages. Following this, several member countries raised objections, leading to the removal of certain items from the list of tariffs.
Trump’s Warning to China: Additional 50% Tariff
Meanwhile, President Donald Trump has warned China that if it does not retract its counter-tariffs, the U.S. will impose an additional 50% tariff on Chinese goods. Trump stated on the social media platform ‘Truth Social’ that if China does not roll back the 34% increase in tariffs by April 8, 2025, the U.S. will impose the extra 50% tariff, effective from April 9.
The Growing Risk of a Global Trade War and Economic Uncertainty
Trump’s statement has heightened the possibility of a deepening trade war between the two largest economies in the world, the U.S. and China. This could lead to global economic uncertainty. The U.S. had previously announced additional tariffs on nearly 60 countries, including China and India. In retaliation, China has also imposed a 34% tariff on U.S. imports. The trade war has led to a widespread decline in stock markets, and there are concerns about sluggish economic growth in the U.S. as a result.
