EU proposes 25% tariffs on US goods, but not bourbon

BRUSSELS: The EU plans tariffs of up to 25 percent on US goods in retaliation for levies on metals, but will spare bourbon to shield European wine and spirits from reprisals, according to a document seen by AFP on Tuesday.

The proposed tariffs – drawn up since President Donald Trump’s duties on steel and aluminium took effect last month – aim to show EU strength while Brussels seeks to negotiate over Washington’s broader tariffs onslaught.

Brussels scrapped bourbon from a preliminary list of targeted goods, after bowing to demands from major wine exporters France and Italy, which were spooked by Trump’s threat to hit European alcoholic beverages with a 200-percent tariff in retaliation.

The US-produced whiskey does not feature on the final list seen by AFP, which was sent to representatives of EU member states ahead of a vote on Wednesday.

The list proposes levies on goods including soybeans, poultry, rice, sweetcorn, fruit and nuts, wood, motorcycles, plastics, textiles, paintings, electrical equipment, make-up and other beauty products.

Brussels has so far refrained from hitting back at the 20-percent duties on the bloc’s imports ordered as part of Trump’s global tariff onslaught, with EU states rallying behind a push to avert an all-out trade war through negotiations.

EU seeks unity in first strike back at Trump tariffs

But EU trade spokesman, Olof Gill, said on Tuesday that the European Commission could present its planned countermeasures to the new levies “as early as next week”.

He added that the EU would consult with member states and industry on the plan before agreeing on “final measures” that EU capitals would then vote on.

‘Counterproductive’

Brussels has already launched its retaliation to Trump’s 25-percent metals tariffs, with a two-step response set to play out over the next six weeks.

First it will let levies dating from Trump’s first term – but currently suspended – snap back into place in mid-April.

Part two of the response involves a new set of tariffs targeting US goods, as per the document.

If approved, the majority of the levies will take effect mid-May, while some, like tariffs on almonds, will begin in December, according to the document.

Initially Brussels estimated the US tariffs would target $28 billion worth of its exports, and the European response would affect the same amount of US products.

But EU trade chief Maros Sefcovic on Monday said “it will not be up to the level of 26 billion euros ($28 billion), because we’ve been listening very carefully to our member states”.

Italian Foreign Minister Antonio Tajani reiterated on Monday that Rome did not want bourbon included as it would be “counterproductive”.

“It would be detrimental to our wine exports,” he told reporters in Luxembourg as EU trade ministers met to discuss Trump’s sweeping new tariffs announced last week.