The tit-for-tat has begun—and it’s not just between the U.S. and China.
After President Trump threatened to impose tariffs on European cars—a decision he is due to make in the coming weeks—the European Union is preparing to hit back.
The duties on Harley-Davidson (HOG) motorcycles, peanut butter, and bourbon imposed in late June were just a start; now The Financial Times reports that the EU now has its eyes on “humble staples such as ketchup.”
But your favorite french fry condiment isn’t the only target. The retaliation list reportedly includes duties worth over 18 billion euro ($21.07 billion), on items such as frozen fish, raisins, suitcases, and adhesive bandages.
These tariffs will only be implemented should Trump decide to go ahead with placing duties on EU cars and car parts. Europe imported American cars worth €77 billion ($90.13 billion) in 2016, while the U.S. imported €254 billion ($296.12) in cars from Europe, according to Eurostat figures reported by CNBC. That large trade deficit is a major reason behind Trump’s proposal to impose new duties.