TRADE WAR: EU fights back with levies on jeans and bourbon as Trump’s tariffs bite

EPA

Trade war: The EU has announced retaliatory tariffs in response to Donald Trump's metal levies

American exports including jeans, motorbikes and bourbon whiskey will be slapped with new levies on Friday, EU trade commissioner Cecilia Malmstrom said.

The tariffs are the latest in a tit-for-tat row between the traditionally close allies, which began when Donald Trump introduced harsh tariffs on imported steel and aluminium.

Announcing the European response, which will target £2.4billion (€2.8bn) worth of US products, Ms Malmstrom said Brussels had no choice but to fight back.

She labelled the US tariffs of 25 percent on steel and 10 percent on aluminium as "unilateral and unjustified”.

We did not want to be in this position

Cecilia Malmstrom

Ms Malmstrom said: “We did not want to be in this position.

“However, the unilateral and unjustified decision of the US to impose steel and aluminium tariffs on the EU means that we are left with no other choice.”

Ms Malmstrom insisted the EU’s measures were “measured, proportionate” and in line with World Trade Organisation rules.

She added if the US lifts its metals tariffs, the EU would lift its levies.

AFP/GETTY IMAGES

Donald Trump has previously said trade wars are 'easy to win'

If Washington refuses to back down, a further £3.1bn (€3.6bn) worth of tariffs is also being considered by the European Commission, she said.

Mr Trump’s tariffs also target neighbouring Canada and Mexico, with Canada imposing its own retaliatory tariffs on £9.5bn ($12.5bn) worth of American exports from July 1.

Meanwhile, Mexico has already slapped US products ranging from steel to pork and bourbon.

President Trump insists his tariffs are needed to protect American workers and has said the EU treats the United States “very unfairly”.

GETTY IMAGES

Donald Trump is also fighting a trade war with China

The former reality TV star is fighting a trade war on multiple fronts, with China also promising swift retaliation after the US threatened to impose levies on a further £151bn ($200bn) of Chinese goods.

Beijing yesterday hit back over the “extreme pressure” applied by Mr Trump’s administration.

China’s commerce ministry said: “Such a practice of extreme pressure and blackmailing deviates from the consensus reached by both sides on multiple occasions.”

“The United States has initiated a trade war and violated market regulations, and is harming the interests of not just the people of China and the US, but of the world.”

RSS feed from The Express

Advertisers website
Thank you for supporting the Daily Brexit