What’s in the EU’s Countermeasures to U.S. Tariffs?

By Julia Payne and Milan Strahm

BRUSSELS, July 25 (Reuters) – The European Union could hit the U.S. with counter-tariffs on 93 billion euros ($109 billion) worth of U.S. goods if the two sides fail to reach a trade deal by Washington’s Aug. 1 deadline for imposing import levies.

The European Commission has prepared two sets of possible counter-tariffs, which would be combined into one and submitted for approval to EU members. They would not be imposed until Aug. 7.

For the full list of tariffs and items, please see here.

Ban on Scrap Metal Sales

• The EU would also ban direct and indirect sales of scrap aluminium and scrap ferrous waste, which includes steel and iron.
• The ban would take effect from September 7.

EU Countermeasures to Steel, Aluminum Tariffs

• EU members agreed a first package in April, but the measures were immediately suspended.
• The package hits imports of U.S. goods worth 21 billion euros and is designed as a response to U.S. tariffs on steel and aluminium.
• The package sets a 25% tariff on most of the imports, but some goods like diamonds would be hit by a lower duty of 10%.
• The products include a range of agricultural goods: poultry, beef, fruit, cereals such as wheat, barley and oats, vegetable oils, corn (maize), rice, and orange juice.
• Other goods include home appliances, such as dishwashers and vacuum cleaners, sanitary products like toilet paper and dental floss, and larger items like motorcycles and motor boats.
• Soybeans and almonds are on this list at 25%, but would not be impacted until Dec. 1.

EU Countermeasures to Baseline, Car Tariffs

• The second package is designed to respond to so-called “reciprocal” baseline tariffs, which U.S. President Donald Trump has threatened to raise from 10% to 30%, as well as to tariffs on cars and car parts, currently set at 25%.
• The proposal was reduced to additional import duties on 72 billion euros of U.S. goods from an initial 95 billion euros.
• The tariff levels will mirror U.S. levels, but the majority are set at 30%, including for aircraft.
• The tariffs would come into effect in two phases on Sept. 7 and Feb. 7.
• The package targets 6.4 billion euros of agri-food products and 65.8 billion euros of industrial goods.
• Industrial items in the package include aircraft and aircraft parts, cars and car parts, machinery, chemicals and plastics, medical devices, and electrical equipment.
• Food items in the package include bourbon, other spirits, wine, farm animals, bees, tobacco and pet food.
• 159 items were deleted from the initial list after a public consultation, according to a Reuters comparison of the two lists.
• Industrial products removed include all gas turbines, most magnets, all laboratory reagents, some photographic film, musical instrument strings, and some equipment related to semiconductors and data storage.
• Removed food products include soya bean seeds, pure-bred breeding horses, and bovine semen.

($1 = 0.8530 euros)

(Reporting by Julia Payne and Milan Strahm. Editing by Philip Blenkinsop and Mark Potter)