European Union plans to imports retaliatory tariffs worth $39.1 billion on US goods entering the bloc’s member states. These tariffs would be imposed by November 2019. The timing is a direct response to President Trump’s claim in May that some imported vehicles and parts posed a national security threat, giving him reason to put a 25 percent tax on cars from the E.U. However, a final decision was put off for six months, which is expected to end around mid-November.
Car taxes aren’t the only battle between them. The two have an ongoing dispute over subsidies connected to EU firm Airbus and American firm Boeing. The U.S. plans to impose about $7 billion in levies on imports from the region as soon as a World Trade Organisation arbitrator issues his decision on damages. That decision is expected before the end of this summer, although it could be delayed by a few weeks.
The U.S. in April disclosed an initial list of proposed categories that could face tariffs, such as handbags over $20; sweaters and vests from wool and cashmere from Kashmir goats, as well as apparel items such as men’s and boys’ suits. When the U.S. tariffs are imposed, the E.U. in turn is expected to face retaliatory duties on $22 billion worth of U.S. goods imported to the member states.
