Transatlantic Trade War Full-Blown... EU to Impose Retaliatory Tariffs on the US Starting November 1

# EU to Impose Tariffs on Up to $41 Billion of US Goods in Two Phases EU Chief "Open to Negotiations with the US"; UK Holds Off on Immediate Retaliation (Seoul/Brussels = Yonhap News) Reporter Ko Dong-wook, Correspondent Jeong Bit-na = The 'tariff war' between the US and Europe across the Atlantic is escalating into a full-scale confrontation. The European Union (EU) is responding with countermeasures after the Trump administration imposed tariffs on imported steel and aluminum. The European Commission, the executive branch of the EU, announced on the 12th (local time) that it would impose tariffs on US products worth 26 billion euros (approximately 41 trillion won) in two phases starting next month. This announcement came in response to the US implementing a 25% tariff on all imported steel and aluminum at 12:01 AM Eastern Time on the same day. The first phase of the EU's retaliatory tariffs, automatically implemented from April 1, is a 'rebalancing measure' initially introduced to counter the tariffs on steel and aluminum imposed by the Trump administration. This measure was halted when Joe Biden took office in 2021. According to this measure, symbolic American products such as Harley-Davidson motorcycles, bourbon whiskey, and Levi's jeans, totaling 8 billion euros (about 12 trillion won), would be affected. The additional tariff rates for each item range from 10 to 50%. Starting April 13, the second phase targets 'sensitive items for the Republican Party,' totaling 18 billion euros (about 28 trillion won). Products potentially facing tariff increases include soybeans from Louisiana, a key export item from House Speaker Mike Johnson’s home state, as well as beef and poultry products from Kansas and Nebraska. The final list of applicable items will be confirmed after consultations among EU member states. The authority to enforce trade policies for the 27 EU countries rests solely with the European Commission. Notably, the scope of the EU's countermeasures is far broader compared to its response during the Trump administration's first term, suggesting a greater impact on the US economy. There are concerns that if the EU, one of the largest single markets, engages in a 'full-scale war' with the US, it could significantly affect the global economy. A high-ranking EU official told reporters that the retaliatory measures are "strong but proportional to the impact of the new US steel tariffs on EU products." The official added that they considered items that could be replaced with EU-made products to minimize the impact within the region. However, the EU has opened the door to negotiations by not immediately implementing the tariffs, instead setting them for April. European Commission President Ursula von der Leyen expressed regret over the US steel tariffs, stating, "We are always open to negotiations." Von der Leyen also delegated full authority for negotiations with the US to Maroš Šefčovič, Commissioner for Trade and Economic Security. Meanwhile, the United Kingdom, which has left the EU, remains cautious. James Murray, Deputy Minister of the Treasury, told Times Radio that the UK reserves the right to retaliate but will not take immediate action, emphasizing a practical approach. Jonathan Reynolds, UK's Secretary of State for Business, said, "We are swiftly negotiating for a broader economic agreement to eliminate additional tariffs with the US." Countries will closely monitor the progression of the tariff war and meticulously devise response measures tailored to their respective circumstances. Bloomberg News reported that leaders from countries ranging from India to Europe are closely examining the case of Canada to assess the impact of retaliatory actions against President Trump's tariffs. The Ontario provincial government initially imposed a 25% export tax on electricity exported to the US, but retracted it after President Trump retaliated by threatening to raise tariffs to 50%. Bloomberg noted this as an example where President Trump's 'brinkmanship' yielded results. In contrast, Mexico opted not to implement immediate tariff retaliation, choosing instead to observe the situation and eventually securing a postponement of US tariffs. There are also interpretations that Canada did not come away empty-handed, as Ontario Premier Doug Ford engaged in talks with US Secretary of Commerce Howard Lutnick soon after announcing the export tax on electricity. sncwook@yna.co.kr