Markets

European Union tariffs target U.S. goods from motorbikes to jeans

European Union tariffs target U.S. goods from motorbikes to jeans

The import duty on chickpeas and bengal gram, or chana, has been increased to 70 per cent and will take effect from 4th August.

The European Union retaliated against President Trump's steel and aluminum tariffs Friday with tariffs on about $3.3 billion worth of American goods, including bourbon, orange juice, peanut butter, and motorcycles. And bourbon is a big product of Kentucky, where the Senate majority leader, Republican Mitch McConnell, is from.

European Commission President Jean-Claude Juncker, who has said the bloc would target "Harley-Davidson, bourbon and Levi's jeans", said on Thursday the U.S. decision "goes against all logic and history".

Trade relations between Beijing and Washington risk descending into all-out conflict, with US President Donald Trump having threatened to impose tariffs on nearly all of Chinese exports to the United States.

A transatlantic trade battle could open a second front in a global trade war, with much at stake: The United States and the European Union trade just over €1 trillion ($1.2 trillion) in goods and services each year.

"The woes the administration is inflicting on Chinese companies do not simply translate into boons for USA enterprises and the U.S. economy", the state newspaper said in an editorial headlined "Protectionism symptom of paranoid delusions". "Needless to say, if the USA removes its tariffs, our measures will also be removed". A separate 10 per cent levy is being applied to USA playing cards imported into the bloc. European steel producers are concerned about a loss of market access but also that steel from elsewhere will flood in. "The travails of the U.S. economy have been the result of the costly wars the United States has pursued and the damage done by the greed and dubious practices exposed by the subprime crisis". The higher tariffs had previously been registered with the World Trade Organization (WTO). If the WTO rules in its favor, or after three years if the case is still going on, the European Union plans to impose further tariffs of 3.6 billion euros on US products. Trump is also looking at new tariffs on auto imports, opening a new front in the trade war. Both sides have promised to impose tariffs early next month on billions of dollars in goods.