20% TARIFFS IMPOSED BY THE USA ON THE EUROPEAN UNION

Highly anticipated, Donald Trump’s announcements on the application of tariffs did not spare the EU, which is subject to an additional 20% tax on its exports to the USA. Steel and aluminum remain taxed at 25%, while lumber, pharmaceuticals and semiconductors are excluded from the announcements.

TAXES VARY WIDELY FROM COUNTRY TO COUNTRY

The tariffs imposed start at a floor rate of 10% and vary widely from country to country: the UK will be taxed at 10%, while China will be taxed at 34%.

The floor rate of 10% will come into force on April 5, while the sixty other countries with higher rates will be taxed from April 9.

The Trump administration has announced that it remains open to negotiation on a case-by-case basis, but also explains that it reserves the right to raise or lower tariffs depending on the reactions of individual countries.

Ursula Von Der Leyen explained that there was still time to negotiate after Donald Trump’s announcement. These exchanges will either result in lower tariffs, or in a series of counter-measures already considered and imposed by the EU on the USA.

WORRIED SECTORS

These sectors include the automotive industry, which has been facing 25% higher customs duties since this morning.

The European wine and spirits sector is feeling the pinch, and hopes to take part in the negotiations to avoid harmful repercussions for the sector and all the jobs involved. The French industry, for its part, fears a drop of 800 million euros in exports if duties remain at 20%.

Emmanuel Macron will today receive “representatives of the industries affected by the tariff measures announced by the United States”.

These tariffs are likely to disrupt world trade, and their repercussions are likely to be felt in both Europe and the USA.

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