EU takes a step back in tariff "war" with US, what is the purpose?

On March 20, the European Union (EU) announced a delay in imposing retaliatory tariffs on US goods, expressing its willingness to consider tariffs with this country.

The delay in imposing retaliatory tariffs is part of the EU's strategy to show goodwill during the tariff consideration process with the US. Illustration photo. (Source: CNBC)

According to the original plan, the 27-member bloc's countermeasures were expected to take effect from April 1 in stages.

Specifically, phase 1 starting from April 1, the EU will impose a 50% tax on whiskey, motorboats and motorcycles from the US.

In the second phase, expected to take effect on April 13, the old continent will impose tariffs on beer, poultry, beef and agricultural products such as soybeans, tomatoes and raspberries.

It is expected that the total value affected in both phases could amount to about 28 billion USD of export goods of the world's number 1 economy.

Currently, according to the European Commission (EC), the entire EU's two-phase retaliation measures will come into effect simultaneously in mid-April 2025, depending on the negotiation process.

The delay in the first phase of tariffs is to buy more time for negotiations with the US government, said Olof Gill, a spokesman for the EC. The adjustment in the timing does not reduce the impact of Brussels' response.

EU Trade Commissioner Maros Sefcovic stressed that the delay was part of the bloc's strategy to show goodwill during the tariff consideration process. The EC will assess Washington's actions to "adjust its response accordingly".

Meanwhile, President and CEO of the Distilled Spirits Council of America Chris Swonger said this is a positive development and gives hope to the country's distillers about avoiding the 50% tax on whiskey.

Earlier, President Donald Trump threatened to impose a 200% tariff on European wine and alcoholic beverages after the old continent announced retaliatory measures.

Analysts at financial services firm TD Cowen say higher taxes for Brussels are inevitable, it's just a matter of how high.

Source: https://baoquocte.vn/eu-lui-mot-buoc-trong-cuoc-chien-thue-quan-voi-my-muc-dich-la-gi-308371.html