Tag: retaliation

After China, EU Gears Up With $28 Billion Retaliatory Tariff Hit on US Goods

The European Union is poised to slap retaliatory tariffs on up to $28 billion (€25 billion) worth of U.S. imports within days, escalating trade tensions with Washington following sweeping new duties from President Donald Trump. Reuters reports the bloc will target a wide range of American products — including meat, cereals, wine, wood, clothing, chewing gum, dental floss, vacuum cleaners, and even toilet paper.

The move in response to Trump’s 25% tariffs on EU steel, aluminium, and vehicles, as well as 20% reciprocal tariffs taking effect Wednesday on nearly all other goods has made the long-time ally furious and frustrated.

The European Commission, which oversees the bloc’s trade policy, will unveil its proposed countermeasures to EU member states late Monday. The move comes as European Commission President Ursula von der Leyen blasted the U.S. levies as a “major blow to the world economy” but signaled openness to negotiations, saying the EU remains “always ready” to talk.

Trump’s latest tariff package hits approximately 70% of EU exports to the U.S., worth €532 billion ($585 billion) last year. Additional duties on copper, pharmaceuticals, semiconductors, and timber are reportedly still in the pipeline.

The EU response shows a vivid revival of hostilities that first erupted during Trump’s first term, when the U.S. imposed similar tariffs citing national security concerns under Section 232. At that time, the EU responded with duties on $3.4 billion in American exports, targeting iconic products like Harley-Davidson motorcycles, bourbon, and Levi’s jeans. That standoff was largely diffused under the Biden administration, with a temporary suspension of the tariffs in 2021, but the new wave under Trump’s second term is re-igniting economic tensions.

President Ursula von der Leyen also condemned the fresh duties as a “major blow to the world economy,” though the Commission has yet to formally announce its full response. “We are always ready to talk,” she added, hinting at a potential diplomatic track, even as the EU moves to finalize its hit list.

In 2024, EU exports to the United States totaled €532 billion ($585 billion), with top sectors including industrial machinery, pharmaceuticals, vehicles, and agricultural products. Roughly 70% of those exports now face some form of U.S. tariff under the new measures, with further duties on semiconductors, timber, and copper reportedly under consideration.

The 27-member EU trade ministers will meet Monday in Luxembourg for the first bloc-wide political discussion since Trump’s announcement to assess the damage and chart a coordinated response.

Tariffs Shake Up U.S. and Canadian Farm Equipment Industry

A recent farm show in Regina, Canada witnessed many farmers hesitant to buy new equipment like tractors and harvesters, leave alone new-tech machinery. Apparent are worries about tariffs making already expensive machines even more costly, following US-China retaliatory measures.

Some of these machines, like combines, cost more than $800,000. If tariffs suddenly raise prices, farmers say it could hurt their budgets badly, reports Reuters after interviewing several farmers [resent at the farm show. Although Canada avoided some broad U.S. tariffs, it still faces extra charges on things like steel, aluminum, and cars that don’t meet trade rules under the U.S.-Mexico-Canada Agreement. Farmers aren’t sure if the new tariffs apply to farm equipment, and sorting it all out could take weeks.

In the meantime, farmers are holding off on purchases. Some equipment companies, like Case IH, have already laid off workers in the U.S. due to falling demand. Canadian farmers and equipment sellers say the uncertainty is making it risky to buy or sell anything right now.

Bill Prybylski, who leads a Saskatchewan farmers’ group, said many farmers are nervous about spending, even as they admire new equipment at shows.

Derek Molnar from rockpicker-maker Degelman Industries said manufacturers don’t know how the tariffs will affect them either. Since machines are often ordered months in advance, unexpected tariffs could mean big losses.

Manitoba farmer Gunter Jochum said he’s waiting to buy new equipment. Like many farmers, he buys machines from various countries, including the U.S., Germany, and Canada.

Kip Eideberg from the Association of Equipment Manufacturers said about 30% of U.S. farm equipment is sold abroad, with Canada as the top buyer. He warned that tariffs could raise prices, hurt jobs, and mess up the supply chain.

In Saskatchewan, Honey Bee’s general manager Jamie Pegg said they may cut back on production to avoid having too much unsold equipment.

Nancy Malone, who works with Canadian machinery dealers, said the confusion is hurting business. She’s asking the Canadian government not to add more tariffs on U.S. farm machinery, hoping to protect local dealers and farmers.

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