European trade officials sure know how to have fun.
www.politico.eu
The EU’s response to U.S. President Donald Trump’s decision to impose so-called reciprocal tariffs on all of America’s trading partners may be less aggressive than expected, but it does show some creativity in its bid to hit the U.S. where it will hurt the most.
According to an
internal document seen by POLITICO, the Commission is considering slapping tariffs of up to 25 percent on a broad range of exports from the U.S. worth around €22.1 billion based on the EU’s 2024 imports.
The list features run-of-the-mill agricultural and industrial commodities such as soybeans, meat, tobacco, iron, steel and aluminum — to hit the American sectors that rely most on transatlantic exports.
Dig deeper, and it turns out the EU’s trade nerds have stirred some unaccustomed creativity into their expert knowledge of obscure customs codes, while channeling a helping of passive aggression to inflict pain on Trump’s base.
EU countries are set to vote on the new duties on Wednesday, with no major opposition expected.
Once they’ve approved the list (which is technically made up of multiple lists), the first set of tariffs on goods such as cranberries or orange juice, which the EU initially imposed in 2018 during the first Trump presidency but suspended in 2021, will take effect on April 15.
A 25 percent duty will then kick in from May 16 on a second batch of imported items such as steel, meat, white chocolate and polyethylene. Finally, a 25 percent duty on almonds and soybeans will take effect Dec. 1. (Leave it to the Commission to build some suspense.)
Overall, EU duties are set to hit up to $13.5 billion worth of exports from red states, according to POLITICO's analysis of 2024 trade data.
Let’s start with the EU’s No. 1 target — soybeans, the most valuable item on the bloc’s hit list, a product whose economic and symbolic significance for the Republican Party's heartlands cannot be overstated.
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The EU is also targeting beef from Kansas and Nebraska, poultry from Louisiana, car parts from Michigan, cigarettes from Florida, and wood products from North Carolina, Georgia and Alabama.
While the Commission ended up dropping whiskey from the final draft after
successful lobbying from France, Italy and Ireland, it did include other more niche items designed to cause the greatest pain to exporters in Republican states.
These include (but are not limited to) ice cream from Arizona, handkerchiefs from South Carolina, electric blankets from Alabama, ties and bow ties from Florida (unless they’re made of silk, which Democratic California will be more than happy to provide), and washing machines from Wisconsin.
Pasta from Florida and South Carolina will also face some tariff heat, though Italy will likely be delighted to fill the market gap.
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