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Aircraft and agricultural products in firing line for further EU tariffs
@Source: irishtimes.com
Aircraft manufacturers, the agricultural sector, car makers and chemical products are in the firing line for further tariffs the European Commission is proposing would be put on imports from the US.
The European Union’s (EU) powerful executive arm leading the response to US president Donald Trump’s tariffs, is today expected to publish an extensive list of US products it would hike import duties on, if trade negotiations fail.
The commission is trying to ramp up pressure on the US administration, by widening the range of products that would be subject to import levies when sold into the EU, should US tariffs remain in place.
It is understood US aircraft manufacturers, such as Boeing, will be targeted in the coming set of proposed retaliatory tariffs, which would have a major impact on Ryanair.
The Irish airline previously announced it would spend €36 billion buying 300 Boeing aircraft, to be delivered between 2027 and 2033.
EU officials have been seeking to cut a deal with the US administration that would see the sweeping tariffs introduced by Mr Trump walked back.
[ Trump’s tariffs could see up to 25,000 fewer jobs created in IrelandOpens in new window ]
The commission set out several concessions it was willing to make in a EU-US trade deal, in a document sent to senior US officials last week.
It is understood the EU executive said it would be willing to consider some tweaks to its strict food safety rules. The proposed changes would make it easier for the US to export fish and lobster to the EU, but would not open the door to US chlorine-washed chicken, one source said.
[ Ireland fears EU response to US tariffs could hit tech sectorOpens in new window ]
The paper setting out the EU’s negotiating stall was sent to US commerce secretary Howard Lutnick and trade representative Jamieson Greer, according to a source with knowledge of the document.
It reiterated that the EU was willing to buy more liquefied natural gas (LNG) from the US and again proposed that both sides drop long standing pre-Trump tariffs on industrial goods and automobiles to zero.
The negotiating paper also made reference to the EU and US co-operating to tackle geopolitical risks, a nod to China, though it is believed the country was not named in the document.
EU states already agreed on an initial package of tariffs on €21 billion of US products, such as soybeans, motorbikes, oranges, clothes and steel. Those levies were delayed until mid-July, to allow time for negotiations to take place.
Facing immediate pushback from the financial markets in April, Mr Trump announced a 90-day pause on the higher rates of his “Liberation Day” tariffs, which would have seen EU imports face import taxes of 20 per cent.
Tariffs of 10 per cent on goods sold into the US from the EU and other trading partners remain in place, as do 25 per cent duties on imports of steel and cars.
The commission is set to announce a second package of proposed retaliatory tariffs, that would come into effect alongside the first batch, if efforts to strike a deal with Mr Trump come to nothing. The second package would hit up to €95 billion worth of US imports.
US agri-food products and chemical products are expected to be targeted, as well as the US automobile industry, according to several sources.
The commission may also propose raising import duties further on some sectors included in its initial retaliation, which have yet to come into effect, one source said.
National capitals and industry will be expected to make submissions to the commission over the coming days and weeks on the proposals, which may see some products removed from the hit list. EU states will then vote to approve the final package of provisional tariffs.
Previously France, Italy and Ireland successfully lobbied to have US whiskey, bourbon and dairy removed from the EU’s first package of tariffs, due to fears exports of European spirits and dairy would be singled out for higher tariffs by Mr Trump in response.
The second package of proposed EU tariffs focuses on goods, rather than services.
European Commission president Ursula von der Leyen has said no option is off the table in how the EU might respond to the trade dispute the US has started. The German politician said this could even include hitting US tech multinational companies, by putting a levy on the advertising revenues of digital services.
The Government has been lobbying behind the scenes for the EU to keep US tech giants out of the fray, arguing that would be seen as a “nuclear” escalation in the trade dispute.
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