EU leaders have approved a scheme to introduce customs duties worth 93 billion euros on American products. The scheme will be implemented starting from August 7, if negotiations with Donald Trump fail and Americans apply a 30% tax on European products.
The European Commission received broad support on Thursday from EU member countries to apply retaliatory tariffs on American goods in a single round if no trade agreement is reached with the Trump administration, two EU diplomats told Politico.
American products worth 93 billion euros — from soybeans to aircraft — would be subject to tariffs of up to 30%, although not all would be taxed at such a high rate, the publication writes.
Following the vote, in which only Hungary objected, EU tariffs will not take effect immediately. They will remain suspended until August 7 to allow for a deal to be reached with the United States. Until then, European leaders hope to find a negotiated solution.
Discussions between the EU and the US have intensified after Donald Trump sent a letter threatening a 30% customs duty on all imports from the EU if no agreement is reached by August 1. The two parties are now aiming for an agreement that would establish a base customs duty for the United States at 15%, similar to the agreement with Japan announced by the American president.
T.D.