EU considers additional levies in retaliation to U.S. tariffs
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The European Union is considering the implementation of new tariffs against the United States from mid-April, in addition to countermeasures that were initially suspended. It was stated by European Trade Commissioner Maroš Šefčovič during his hearing at the European Parliament on Wednesday, March 19th.
Sefcovic said that the EU is carefully considering this option following the recent announcement from the White House regarding the imposition of new tariffs from April 2nd. However, the Trade Commissioner emphasized that he had received instructions from European Commission President Ursula von der Leyen to continue talks with the United States to find a solution.
Meanwhile, European Central Bank President Christine Lagarde stated that a 25% tariff on imports from Europe could reduce eurozone growth by approximately 0.3 percentage points in the first year. Following that, the adoption of countermeasures by the EU against the United States could increase its impact by half a percentage point. In terms of economic growth, the impact of the tariffs would be more significant in the first year but could diminish, though it would still affect production levels.
Furthermore, in the short term, adoption of countermeasures and weakness of the euro exchange rate — caused by reduced U.S. demand for European products — could increase inflation by half a percentage point. According to Lagarde, in the medium term, reduced economic activity could lessen inflationary pressure on the European economy. However, she highlighted that these predictions are highly uncertain, as the scope of the tariff increases could be influenced by various factors.
Sefcovic said that the EU is carefully considering this option following the recent announcement from the White House regarding the imposition of new tariffs from April 2nd. However, the Trade Commissioner emphasized that he had received instructions from European Commission President Ursula von der Leyen to continue talks with the United States to find a solution.
Meanwhile, European Central Bank President Christine Lagarde stated that a 25% tariff on imports from Europe could reduce eurozone growth by approximately 0.3 percentage points in the first year. Following that, the adoption of countermeasures by the EU against the United States could increase its impact by half a percentage point. In terms of economic growth, the impact of the tariffs would be more significant in the first year but could diminish, though it would still affect production levels.
Furthermore, in the short term, adoption of countermeasures and weakness of the euro exchange rate — caused by reduced U.S. demand for European products — could increase inflation by half a percentage point. According to Lagarde, in the medium term, reduced economic activity could lessen inflationary pressure on the European economy. However, she highlighted that these predictions are highly uncertain, as the scope of the tariff increases could be influenced by various factors.