Red states may be hardest hit when the European Union retaliates against U.S. tariffs on steel and aluminum.
The E.U. has said it will issue retaliatory tariffs in two phases, with the first wave taking effect on April 1, affecting 8 billion euros worth of goods. A 99-page list of products that may be taxed by the second wave of tariffs — which goes into effect on April 13 and targets 18 billion euros worth of goods — has already been made public. In total, over the two phases, the E.U. will impose 26 billion euros worth of additional tariffs.
It remains unclear how the tariffs will be structured. The E.U. is currently speaking to consumers, companies, and policymakers before it finalizes the list of goods. The 27 countries in the union are likely to strike crops in the Louisiana district represented by Speaker Mike Johnson, in addition to Nebraska and Kansas livestock, as European officials aim to target politically sensitive areas that could force the U.S. to the negotiating table.
Maroš Šefčovič, the E.U. trade commissioner, met with U.S. Commerce Secretary Howard Lutnick last month in an attempt to prevent the tariffs. On Wednesday, he said the trip to Washington made clear “that the E.U. is not the problem.”
“I argued to avoid the unnecessary burden of measures and countermeasures, but you need a partner for that. You need both hands to clap,” he told reporters.
The European steel association Eurofer has said that the union could lose as much as 3.7 million tons of steel exports, as the U.S. is the second largest market for E.U. steel producers, making up 16 percent of all European steel exports.
According to the E.U., the annual trade volume between the union and the U.S. is about $1.5 trillion, or 30 percent of global trade. The E.U. has an export surplus in goods, but they have noted that the U.S. has a surplus when it comes to services.
These are some of the goods which may be hit in the second wave of tariffs.
Bourbon, boats, and motorcycles
The initial tariffs will be placed on goods that were affected during the trade war in President Donald Trump’s first term. Whiskey and Harley-Davidson motorcycles face tariffs of as much as 50 percent.
The head of the Distilled Spirits Council, Chris Swonger, said that the actions from the E.U. are “deeply disappointing and will severely undercut the successful efforts to rebuild U.S. spirits exports in EU countries,” according to the AP.
The E.U. buys significant amounts of American whiskey, and the exports increased by 60 percent in the last three years as previous tariffs were removed.
Mowers, washing machines, and refrigerators
The E.U. tariffs may target household appliances, both large and small, as trade bureaucrats attempt to hit the U.S. where it hurts.
Outdoor gear, tents, and tools
Some tariffs may be interpreted as direct attacks on American pastimes. The European Commission revealed their two-stage plan on Wednesday, which goes much further than the trade spat from Trump’s first term in the White House.
Plant machinery and snowplows
Heavy machinery may also be targeted as American industry is scrutinized.
Meat, poultry, fruit, vegetables, beer, and wine
The taxes on imports may be placed on beef and poultry from Republican states such as Kansas and Nebraska. Some blue states may also be hit, including Illinois, the top U.S. producer of soybeans.
Wood products
Alabama and Georgia may see their wood industries targeted by the tariffs.
Chewing gum, communion wafers, peanut butter, and nicotine products
Ursula von der Leyen, the president of the European Commission, said in a statement that the union “will always remain open to negotiation.”
“As the U.S. [is] applying tariffs worth 28 billion dollars, we are responding with countermeasures worth 26 billion euros,” she added.
“We firmly believe that in a world fraught with geopolitical and economic uncertainties, it is not in our common interest to burden our economies with tariffs,” she added.
Handbags, jeans, shirts, and women’s négligés
Von der Leyen went on to say that “Jobs are at stake. Prices will go up. In Europe and in the United States.”
“We deeply regret this measure. Tariffs are taxes. They are bad for business, and even worse for consumers. These tariffs are disrupting supply chains. They bring uncertainty for the economy,” she said.
Meanwhile, the American Chamber of Commerce to the European Union said that the U.S. and E.U. tariffs “will only harm jobs, prosperity and security on both sides of the Atlantic.”
“The two sides must de-escalate and find a negotiated outcome urgently,” the chamber added Wednesday.
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