According to a report on September 9 by "Politico", the European Commission is considering imposing a 25% tariff on some American products. The range of goods subject to the tariff is extensive, including soybeans, meat, tobacco, iron, steel, and aluminum, among others. Based on the EU's import value for 2024, the affected goods are worth approximately 22.1 billion euros.
The report pointed out that the EU's tariff will impact export products worth $13.5 billion from Republican-leaning states (i.e., states that support the Republican Party) in the United States.
Soybeans, which are the EU's "top target," are of great economic and symbolic importance to the Republican heartland. The U.S. is the world's second-largest producer and exporter of soybeans, with about 60% of its soybeans, soybean meal, and soybean oil used for exports. Of the soybeans exported by the U.S. to the EU, 82.5% come from Louisiana, the home state of House Speaker Mike Johnson. Last Friday, soybean prices fell more than 3%, down nearly 17% compared to a year ago.
The U.S. Soybean Export Council (USSEC) stated that Europe is an important market for the U.S. soybean industry. Data from the U.S. Department of Agriculture shows that in 2024, the U.S. exported $2.43 billion worth of soybeans to the EU, accounting for one-tenth of the total exports that year. Statistical data from the analytics website TrendEconomy show that in 2023, 44% of the EU's soybean imports came from the U.S.
Last month, American soybean producers criticized Trump's combative business practices, stating that "tariffs cannot be taken lightly" and urging the U.S. government to "reconsider" tariffs against Canada, Mexico, and China, as well as possible impending tariffs. However, so far, Trump has insisted that he "does not consider" suspending them.
Data from the American Farm Bureau Federation indicates that over 20% of American agriculture's annual income depends on exports. In 2024, the U.S. exported $176 billion worth of agricultural products, with 47% exported to three countries: Mexico (17.2%), Canada (16.1%), and China (14%).
Farmers harvest soybeans in the U.S. IC Photo
In addition to soybeans, the EU's targets also include beef from Kansas and Nebraska, poultry from Louisiana, automotive parts from Michigan, cigarettes from Florida, and wood products from North Carolina, Georgia, and Alabama.
The report noted that although successful lobbying by France, Italy, and Ireland led the European Commission to remove whiskey from the proposed list of taxed goods, it did include other niche products aimed at causing maximum pain to exporters in Republican states.
These goods include (but are not limited to) ice cream from Arizona, handkerchiefs from South Carolina, electric blankets from Alabama, ties and bow ties from Florida, and washing machines from Wisconsin.
Pasta from Florida and South Carolina will also face tariff pressure, though Italy may be willing to fill the market gap.
Currently, the EU is trying a "carrot and stick" approach, indicating that it will not bow to Trump's unreasonable demands while keeping the door open for possible negotiations.
On April 7, European Commission President Ursula von der Leyen said that Europe had previously proposed "zero-for-zero" agreements for the automobile industry multiple times, but the U.S. side had "not responded appropriately." Von der Leyen said: "We prefer to solve problems through negotiation." She also warned that the EU Commission would use "all available tools" for countermeasures when necessary, including the anti-coercion instrument (ACI), which was launched in 2023 but has never been triggered, to strike at U.S. technology, banking, and other service sectors.
However, Trump was dissatisfied with the "zero-for-zero" deal, accusing European countries of not purchasing enough American goods.
"The EU treats us very poorly," he said. "They will have to buy energy from us because they need energy, and they must also buy from us. If they can buy (energy), we can reduce our trade deficit by $350 billion in a week."
Trump has announced a 20% tariff on all goods imported from the EU, effective April 9. Steel, aluminum, and cars will be subject to a separate 25% tariff. Over 380 billion euros worth of EU-made products will be affected. Pharmaceuticals, copper, timber, semiconductors, and energy are exempted.
EU countries will vote on new tariffs against the U.S. on the 9th, with no major opposition expected.
Once approved by EU member states, the EU will reinstate tariffs on products such as cranberries and orange juice that were imposed in 2018 during Trump's first term starting April 15. The EU suspended these tariffs in 2021.
If no agreement is reached between the U.S. and the EU, starting May 16, the EU will impose a 25% tariff on steel, meat, white chocolate, etc. The tariffs on soybeans and almonds have been postponed until December 1 due to farmers' objections to taxing soybeans used as animal feed.
European Commission President Ursula von der Leyen IC Photo
According to Britain's Financial Times, so far, the EU has only "hit back hard" regarding U.S. steel and aluminum tariffs.
European Commission trade affairs spokesperson Olof Gill said on the 8th that the EU is accelerating its response to the trade war initiated by Trump, with the possibility of entering the second phase of its response to U.S. tariffs as early as next week, to counter Trump's move of imposing tariffs on EU car exports and a 20% tariff on EU goods.
Gill said that next week, the EU will provide member states with a countermeasure plan; however, if possible, the EU still prefers to negotiate with the U.S.
"Our doors are open, and we are ready to negotiate," Gill admitted that the situation is difficult and has not improved but worsened. "We are trying to sit down and talk with our American friends to improve the situation."
Gill also stated that the EU is not prepared to discuss many complaints raised by White House trade advisor Peter Navarro, who hopes the EU modifies policies far beyond the scope of tariffs.
Navarro has repeatedly criticized the EU's 19% value-added tax, but Gill denied this constituted a non-tariff trade barrier. This American advisor also criticized "discriminatory product standards," but Gill stated that the EU will not compromise on its health and safety standards, such as banning the import of many genetically modified foods.
Although the EU has threatened to respond with "reciprocal tariffs," there are differing voices within the EU. France, Germany, and Spain are pushing for strong and swift retaliatory measures, but Italy, Greece, Romania, and Hungary oppose escalating tensions, urging the EU to "avoid conflict."
Supporters hope the EU will use ACI to strike at American tech companies and other service providers. Opponents warn that a tariff war between Europe and the U.S. will result in a "lose-lose" scenario, causing severe damage to the European economy. They urge the EU to avoid "excessive countermeasures" and continue seeking solutions through negotiation.
Officials said that the series of tariff measures decided by the U.S. last week will impact EU exports worth 373 billion euros to the U.S., and some EU industries rely on U.S. imports, making it difficult to retaliate without harming EU industries themselves.
They expressed hope that the damage caused to the U.S. stock market and economy could persuade Trump to change his mind. One official said: "This is massive self-harm. The longer we wait, the greater the pressure on him to change course."
This article is an exclusive piece from Observer Network and cannot be reprinted without permission.
Original source: https://www.toutiao.com/article/7491303467248648755/
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