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EU says delaying tariffs on US goods two weeks to mid-April / Photo: LUKE SHARRETT - GETTY IMAGES NORTH AMERICA/AFP
NYSE - LSE
EU says delaying tariffs on US goods two weeks to mid-April
The EU said Thursday its tariffs targeting American goods in retaliation for US levies on steel and aluminium would start in mid-April, two weeks later than planned, to give more time for dialogue.
US President Donald Trump's 25-percent tariffs on imports of the metals took effect on March 12, to which the European Union immediately responded with two sets of countermeasures set to begin on April 1 and mid-April.
Among the US products set to be targeted were bourbon, boats and motorbikes.
Two European sources told AFP that France, Spain and Italy pushed the European Commission to delay its measures -- which have already triggered a Trump threat to hit back at Europe's wine and spirits sector with punishing 200-percent tariffs.
According to one of the sources, bourbon could potentially be withdrawn altogether from the list of targeted goods. Questioned by AFP, the commission said nothing was yet decided on that front.
The first part of the EU response involved letting levies dating from Trump's first term -- but currently suspended -- snap automatically back into place after March 31, with a second set of tariffs set to target US industrial and agricultural goods.
- More time for talks -
The European Commission said it wanted to "align" the timing of its response.
"The EU countermeasures that were announced on 12 March will all take effect in mid-April," EU trade spokesman Olof Gill said in a statement.
"This provides additional time for discussions with the US administration," Gill added, repeating the EU's wish for "constructive dialogue with the US, in order to seek a solution that avoids unnecessary harm to both economies".
Delaying the first set would also allow the commission to consult with member states on the lists of targeted products, Gill said.
The commission leads the 27-country bloc's trade policy and has been in charge of discussions with the United States to avoid a trade war.
Brussels estimated the US tariffs would target $28 billion worth of exports, and its response would affect the same amount of US products.
The EU's response is designed to target US states controlled by Trump's Republican Party as well as goods that the EU believes will cause enough damage for American businesses to pressure the US president to row back.
"The change represents a slight adjustment to the timeline and does not diminish the impact of our response," Gill said.
The EU faces potentially more tariffs on April 2 after Trump promised reciprocal duties -- on both US allies and competitors alike -- though his administration has yet to release the exact details of the plan.
H.Bauer--BlnAP
