Europe Approves Mild Tariff Response While Looking for Deal with Trump

European Union talks tough game on tariffs but introduced its own at a lesser rate than the United States, while saying it was hoping to strike a deal.

The European Commission called tariffs “unjustified and damaging” while introducing its own on American goods on Wednesday, the members of the European Union agreeing on a package of “retaliatory duties”. Only strong Trump ally Hungary, led by Viktor Orban, voted against the measure.

While the announcement of tariffs worth €22 billion come amid swirling headlines of a trade war with China, Europe’s move appears to be anything but, with new tariffs billions less than those imposed by the United States and some headline items cancelled altogether.

Brussels attempted to browbeat President Trump over steel and aluminium tariffs last month, threatening to impose targeted taxes on products made in Republican-voting states. Among them was a mooted 50-per-cent tariff on American whiskey, which Trump immediately countered with a 200 per cent super-tax on European alcoholic drinks exports, threatening the important French wine trade.

Unsurprisingly in the face of such determination, the whiskey tariff wasn’t included in today’s EU package. In all, while the European Union continues to talk tough on Trump — as it believes it must to save face with its own voters — in practice the bloc has stepped away from trade war and imposes perfunctory measures while it makes clear its actual hope is for a negotiated deal.

Indeed, some of the tariffs agreed today won’t come into force for months, giving negotiators more time to strike a deal, should one be possible.

A Commission spokesman said today their negotiators were seeking a “balanced and mutually beneficial” deal with the U.S., reports Euractiv. The same statement saw the powerful leading body of the EU stick to its hypocritical position on tariffs in general, however, insisting that its own are justifiable while those of other nations are irresponsible.

They said: “The EU considers US tariffs unjustified and damaging, causing economic harm to both sides, as well as the global economy”. These remarks echo earlier comments by EU Trade Commissioner Maroš Šefčovič, who also claimed a position of it being good when Brussels does it. In his view, “Unjustified tariffs inevitably backfire”.

Šefčovič had previously said U.S. tariffs on European goods would cost €80 billion. Compared to the €22 billion being levied by Brussels today, the degree to which Europe is not charging into a China-style trade war is further underlined.