EU to impose tit-for-tat tariffs on US imports

Politically sensitive American exports such
as jeans, motorbikes and bourbon whiskey will be targeted
tomorrow

One-Minute Read

The EU’s trade commissioner Cecilia Malmstrom confirmed that
prestige American exports such as jeans, motorbikes and bourbon
whiskey will be hit with a 25% import charge, while cranberries,
orange juice, sweetcorn and peanut butter will also be targeted.
There will even be a 10% tariff on playing cards.

Many of the products the EU has in its sights “are specifically
chosen to have maximum political effect” says the BBC.

Bourbon whiskey is produced in Kentucky, the state of Senate
majority leader Mitch McConnell, while orange juice is a key export
for Florida, a swing state in the US elections.

The imposition of retaliatory tariffs by the EU “confirms a
tit-for-tat dispute that could escalate into a full trade war,
particularly if Trump carries out his threat to penalise European
cars”, says Business Insider.

Canada has already announced it will impose retaliatory tariffs
on $12.5 billion worth of US exports from 1 July, while Mexico put
tariffs on American products ranging from steel to pork and bourbon
two weeks ago.

As the prospect of all out-trade war between the world’s largest
economies grows, the managing director of the International
Monetary Fund, Christine Lagarde warned it could lead to “losers on both sides” and
have a “serious” impact on the world economy.

“Economists have warned the US metal tariffs could lead to
higher metal costs, disrupt supply chains and even get passed on to
US households,” the BBC reports.

Sky News says the US measures “have resulted in
official complaints to the World Trade Organisation by those
targeted, but such disputes have a habit of dragging on for months
if not years”.

Unperturbed, on Sunday Trump raised the stakes in his game of
economic brinkmanship with Beijing, threatening to
raise tariffs on a further $150bn worth of Chinese goods.