PM says he will use policy to shelter British businesses following the stock market turmoil prompted by Trump’s announcement
The EU is likely to approve its first set of targeted countermeasures on up to $28bn (£21.7bn; €25bn) of US imports in the coming days, Reuters is reporting.
The 27-nation bloc faces 25% import tariffs on steel and aluminium and cars and “reciprocal” tariffs of 20% from Wednesday for almost all other goods.
The European Commission, which coordinates EU trade policy, will propose to members late on Monday a list of American products to hit with extra duties in response to Trump’s steel and aluminium tariffs rather than the broader reciprocal levies.
It is set to include US meat, cereals, wine, wood and clothing as well as chewing gum, dental floss, vacuum cleaners and toilet paper. The EU has been cautious to respond the tariffs so far.
European Commission President Ursula von der Leyen said Trump’s levies were a “major blow to the world economy” but held off announcing new countermeasures, adding that the commission was “always ready” to talk.
Trump’s tariffs cover some 70% of the EU’s exports to the US – worth in total €532bn ($585bn; £454bn) last year – with likely duties on copper, pharmaceuticals, semiconductors and timber still to come.
On Monday, Luxembourg will host the first EU-wide political meeting since Trump’s announcement of the sweeping tariffs when ministers responsible for trade from the 27 EU members will exchange views on the impact and how best to respond.Trump’s tariffs explained
My colleagues have done a useful explainer breaking down what Trump’s tariffs are and how they’ve affected the economy since the announcement. Here is an extract from it:
What exactly are the new tariffs Trump is imposing?
Trump’s new tariffs are twofold. First, all imported goods will be subject to a 10% universal tariff starting 5 April. Then, on 9 April, certain countries will see higher tariff rates – what Trump has deemed “reciprocal tariffs” in retaliation for tariffs the countries have placed on American exports.
Keep in mind that tariffs are paid by American companies that are importing goods such as wine from Europe or microchips from Taiwan.
Some of the highest tariffs will be put on imports from Asian countries, including China, India, South Korea and Japan. EU exports will also have a 20% tariff.
