EU Confirms Trade Retaliation Measures vs. U.S. To Take Effect on June 22

Brussels has confirmed that its retaliation measures against Donald Trump’s steel and aluminium tariffs will take effect on Friday, targeting some €2.8bn of US products.
The EU’s hit list slaps 25 per cent tariffs on dozens of US products ranging from orange juice to whisky and pleasure boats. The move is part of the EU’s response to Mr Trump’s decision to declare steel and aluminium imports into the US market to be a national security risk, and to hit them with punitive duties. Cecilia Malmstrom, the EU’s trade commissioner, said that “the rules of international trade, which we have developed over the years hand in hand with our American partners, cannot be violated without a reaction from our side” “Needless to say, if the US removes its tariffs, our measures will also be removed.” - said Malmstrom.

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Pretty clear:  everyone will be a loser, in a trade war, directly or indirectly including America.

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The European Union pull the trigger  - the first phase of retaliation against the U.S. is starting...Trade war

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The US and EU trade tariff retaliatory war will eventually be characterized by a financial crisis in developing countries.

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Well if the EU can get all of U.S.  somewhere else cheaper, go for it.....But they can't...

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Step by step - here we go! The move confirms a tit-for-tat dispute that could escalate into a full trade war, particularly if U.S. President Trump carries out his threat to penalize European cars.

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(edited)

Guess I best get all my shopping done before the 22nd then! I don't see this going the full course because though Trump comes charging like a raped rhino in the beginning he suddenly eases off the pedal once the actual (do or die) negotiations are at their highest degree of heat!  Good idea to be keeping a close eye on the progress or regress of this trade tit 4 tat spat. 

Edited by rick pell
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Somehow I don't picture the European market for American shelled kidney beans to be that earth-shattering.   But what is fascinating is what the EU has whacked US products with a whopping 50% tariff:   sea merchant vessels.  Specifically  (at the tail end of the very long list):

"Sea-going vessels for the transport of goods and seagoing vessels for
the transport of both persons and goods (excl. refrigerated vessels,
tankers, ferry-boats and vessels principally designed for the transport of
persons)"

Now:  who would have thunk that this category of "sea-going vessels" constituted a big export item into Europe, from the USA?  And ferry-boats are excluded.  Does the US even produce one ferry-boat that it has sold into Europe?  Even one?  Anybody know?  I sure don't. 

Other than the ban on bourbon (and OJ, and cranberries), it strikes me a a lot of bombast.  If Trump whacks back with a hefty tariff on German automobiles - well, with the USA the big market for Mercedes and BMW and even Volks/Audi,  how are those guys going to be making out?  Even the diehard BMW enthusiast is not going to swallow a 25% or 50% hit without blinking. 

Now for the serious duty dispute:  dimensional lumber softwoods from Canada.  If you want to see a real long-term festering trade dispute, go no further than the interminable meetings to try to resolve the Canadian stumpage fee dispute.  That one has been going on for at least the last five decades.  Trump just whacked the Canadian lumber industry with a 10% hit  (I think it is ten, might be more. )  That has the effect of finding a domestic market for the wood that formerly was cut for the pulp and paper industry in the USA, now headed for expensive 2x4s.  But remember, with the Canadians traditionally supplying some 1/4 to 1/3 of US home building lumber  (especially to States along the Border), whacking that tariff on top has the perverse effect of making homes much more expensive.  Is that really in the interest of families attempting to purchase a home? I don't think so. 

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