The EU is ready to hit back at Donald Trump’s bombshell tariffs - but instead of simply striking back hard, Brussels may be looking to deploy a more creative response.
As part of his sweeping round of levies, the US president landed the EU with a 20 per cent blanket tariff on all imports, just weeks after announcing damaging 25 per cent tariffs on automotive imports.
Brussels is now considering hitting the US with tariffs targeting products that will particularly impact Republican heartlands, affecting billions of dollars of exports from America’s so-called ‘red states’, according to an internal document seen by Politico.
Levies of up to 25 per cent could be placed on products from Trump-supporting red states - such as ice cream, cigarettes and soybeans - which are most reliant on exports across the Atlantic.
Tariffs being considered by the European Commission would be placed on a broad range of exports worth roughly €22.1 billion based on the EU’s 2024 imports.
Duties of 25 per cent on steel, meat, white chocolate and polyethylene would be introduced in May, before another 25 per cent duty on almonds and soybeans lands on December 1. Iron and orange juice are also among the products that could be hit if the countries vote for the new policy on Wednesday (9 April).
But trade experts in Brussels are seeking to strike industries and areas where Mr Trump has a strong supporter base. According to Politico’s analysis of 2024 trade data, around $13.5 billion of exports from red states will be hit.
Perhaps the most significant example is soybeans, the most valuable item on the EU’s list. The US is the world’s second-largest exporter with around 83 per cent coming from Louisiana, the home and solidly red state of House Speaker Mike Johnson.
Beef from Kansas and Nebraska, car parts from Michigan, ice cream from Arizona, handkerchiefs from South Carolina, ties, bow ties and cigarettes from Florida, wood products from North Carolina, Georgia and Alabama, and poultry from Louisiana are also being targeted by Brussels, Politico adds.
Electric blankets from Alabama, washing machines from Wisconsin, and pasta from Florida and South Carolina would also be impacted.
Mr Trump has shown no signs of backing down from his tariff warfare, despite a significant response from China.
When Brussels offered a “zero-for-zero” tariff scheme on industrial goods such as cars, drugs and chemicals, Mr Trump refused, demanding that the EU buy $350 billion worth of US energy products to make the trade deficit “disappear”.
