The EU has slammed US president Donald Trump’s recently announced plan to impose ‘reciprocal tariffs’ on both allied and hostile nations.
Late last night (13 February), Trump revealed plans to impose “reciprocal” tariffs on countries trading with the US, targeting a range of both allied and hostile nations on a “country-by-country” basis.
As reported by Euractiv, this means a major review by US cabinet officials of the country’s trade policy towards Europe.
Jamieson Greer, the US trade representative, will propose “remedies” to specific instances of perceived discrimination against US firms, which he says could enter force as early as April.
‘Absolutely brutal'
In a White House press conference, Trump said that, though “we all love Europe”, the EU “has been absolutely brutal on trade. They haven't treated us properly.”
Beyond the EU, other trading partners who could be hit by targeted reciprocal tariffs include Brazil, Japan, Canada and India, all major US allies.
The European Commission (EC) has issued a statement to say that “tariffs are taxes”, and that proposed ‘reciprocal tariffs’ on EU goods entering the US would amount to “taxing [the US’] own citizens”.
‘Firmly and immediately’
The EC argues that the EU “maintains some of the lowest tariffs in the world” and that there is “no justification” for an increase in US tariffs on European exports. The implementation of tariffs is “raising costs for business, stifling growth and fuelling inflation” while disrupting global markets, it adds.
“World trade has flourished under predictable, transparent rules and low tariffs.
“For decades, the EU has worked with trading partners like the US to reduce tariffs and other trade barriers worldwide, reinforcing this openness through binding commitments in the rules-based trading system – commitments that the US is now undermining.”
Modi meeting
The inclusion of India as a potential target for tariffs comes after the arrival in Washington DC of Indian prime minister, Narendra Modi, as the Daily Update reported yesterday.
Reuters reports that Modi has offered concessions to Trump on Indian tariffs, as well as the potential for India to purchase greater volumes of US oil and gas as well as military hardware.
Speaking at a joint press conference, Trump indicated that the US could become India’s “number one supplier” of oil and gas, while Modi said he wanted to see trade between the US and India double by 2030.
"Prime minister Modi recently announced the reductions to India's unfair, very strong tariffs that limit us access to the Indian market, very strongly," Trump said, though he maintained that India’s tariffs on US goods are a “big problem”, and are limiting US firms’ ability to operate in the Asian nation.
He emphasised the inclusion of India in the scope for reciprocal tariffs too, stating that “whatever India charges, we charge them”.
Indian foreign secretary Vikram Misri and a senior US official both indicated that trade talks between the US and India could conclude in a deal by the end of 2025.
