This is a follow-up article on this topic already approached two weeks ago.
After Mr. Trump’s declaration of a “trade war” the European authorities had mentioned that retaliation would be made. At first, there was a little bit of speculation, notably on how to hit American businesses that traditionally support the Republican party.
Last Friday (March 16), the EU made publicly available a list of products that shall be affected by this imbroglio (10-page list). It’s estimated that these new tariffs will compensate the €6.4 billion that the EU might lose if Trump’s measures are fully implemented. As promised by the authorities, this retaliation would be conducted according to the WTO’s rules. The Geneva-based organisation shall be notified within the next 90 days. In practise, the announced measures would only take place after this stint for the part A of the list, and after three years for the part B.
The list is a display of power by the European bloc that aims at being exempted from a 25% percent tariff increase on aluminum and steel goods. Cecilia Malmstrom, the EU Trade Commissioner will have a better leverage vis-à-vis her American counterpart, the U.S. Commerce Secretary Wilbur Ross, next week when they will meet.