EU announces new retaliatory tariffs on US products

The EU has released its list of tariffs on US goods, in response to the tariffs imposed on the EU, Mexico and Canada by President Trump.

The new tariffs apply to 340 products overall, worth £2.5 billion, in a tit-for-tat response to the additional duties the US has applied to carbon and alloy, and steel and aluminium goods. The tariffs vary between 10%, 25% and 50%.

Quartz has published the full list, along with commodity codes. It includes food, clothes and textiles, tobacco, steel products, motor boats, playing cards, and iconic American products such as motorcycles and bourbon whiskey.

Almost immediately, Harley-Davidson said it will shift production of EU-bound motorcycles outside of the US as a result of the tariffs, as their impact would reach $100 million per year.

“Harley-Davidson believes the tremendous cost increase, if passed onto its dealers and retail customers, would have an immediate and lasting detrimental impact to its business in the region, reducing customer access to Harley-Davidson products and negatively impacting the sustainability of its dealers’ businesses,” the company said in a filing.

In the short term, the company said it will absorb the cost of the tariffs rather than raising its retail or wholesale prices, with an expected cost of $30-45 million this year.

Trump has threatened to impose a 20% tariff on all cars from the EU unless the tariffs are removed.

(Source: Quartz, Financial Times)