logo
EU member states adopt retaliatory hit list in response to US tariffs

EU member states adopt retaliatory hit list in response to US tariffs

Euronews2 days ago
The member states on Thursday approved the list of retaliatory tariffs proposed by the European Commission to counter US trade measures, with only Hungary voting against.
The list includes an initial package of measures adopted in early April, with up to 30% tariffs targeting products including aircraft, cars and car parts, orange juice, poultry, soybeans, steel and aluminium, yachts.
Bourbon whiskey was also included in the list despite intense lobbying by France and Ireland which fear US retaliation on wine and spirits. EU Industries were also consulted before the Commission proposed the list to the member states.
The countermeasures will only enter into force if no deal is reached by the 1 August, the deadline set by US president Donald Trump from when he's set to impose 30% tariffs on EU imports.
Anti-coercion instrument
A qualified majority of member states also appears willing to trigger the anti-coercion instrument, which would enable the EU to hit US services if no deal is reached.
Germany was for a long time resistant to using this powerful bazooka, but has now joined France, which has long been a strong advocate of the anti-coercion instrument.
Following a dinner on Wednesday between German Chancellor Friedrich Merz and French President Emmanuel Macron, a source from the Élysée stated the shared vision of both leaders on the ongoing negotiations between the EU and the US.
'They hoped for a satisfactory outcome to the discussions that would safeguard the EU's interests,' the source said, adding 'while simultaneously accelerating work on countermeasures — including the anti-coercion instrument — in coordination with the Commission, should an agreement not be reached.'
The US currently impose 50% on EU steel and aluminium, 25% on cars and 10% on all imports.
This article has been updated.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

On defence, France and Germany are inching closer but remain far apart
On defence, France and Germany are inching closer but remain far apart

Euronews

timean hour ago

  • Euronews

On defence, France and Germany are inching closer but remain far apart

Germany is becoming more French - and vice versa - when it comes to defence but big differences in the state of their public finances and strategic thinking mean the so-called Franco-German engine is unlikely to be able to power a big shift in the way the EU as a whole does defence. "From a longer historical point of view, the degree of convergence (between the two countries) is arguably higher than it has been for, I would say, decades," Jacob F. Kirkegaard, a senior fellow at the Brussels-based Bruegel think tank, told Euronews. Both capitals see Russia as their biggest long-term threat, and both have pledged to pour hundreds of billions of euros into their military and defence industrial base. In Berlin, this has been dubbed a "Zeitenwende" (or historical turning point) while Paris said its latest military programmation law is "the ultimate strategic move". This convergence was driven by Russia's ongoing full-scale invasion of Ukraine, which brought back conventional war to European soil, Donald Trump's return to the White House, which has put in doubt continued long-term US commitment to Europe's security, and a change of leadership in Germany. The new chancellor, Friedrich Merz, "basically took what I can only describe as a Gaullist stance", Kirkegaard said, by saying that "Europe needs to prepare for a future without a US security guarantee". 'France is converging with Germany' Yet one example of how this rapprochement in defence remains a laborious process came last week when France's Emmanuel Macron and Merz sought to diffuse tensions over a joint €100 billion project to develop a sixth-generation fighter jet. At the core of the dispute is the demand by France to secure 80% of the workshare for the new Future Combat Air System (FCAS), negating previous agreements that it would be split equally between the two countries and Spain, which is also part of the project. The French demand, however, "should not be as surprising as it seems", Rafael Loss, a policy fellow at the European Council on Foreign Relations (ECFR), told Euronews, given that one of the major differences between France and Germany is how differently they view their military and the purpose they serve. The armed forces in France are part of the national foreign policy - as recent deployments in the Sahel attest - with the country's overseas territories and its possession of the nuclear weapon adding to its global perspective. "That's why the French military is much more comfortable with acting unilaterally or outside of EU, NATO contexts (than Germany's), and this then extends to the kinds of capabilities that the French armed forces prefer acquiring," Loss said. "Everything that relates to the French nuclear deterrent has to work when France is alone. And that means that FCAS, which is supposed to replace the Rafale fighter bombers going forward in carrying French nuclear weapons, French military and political leadership will not accept a situation where they're dependent to produce this capability because the nuclear deterrent depends on that capability." "French industry will need to be able to produce this aircraft by themselves if push comes to shove. They're willing to cooperate when strategic orientations align, but ultimately they have to produce everything independently of others. And again, that's something that many in Germany and across Europe haven't quite realised," he added. Still, Loss continued, "France is converging with Germany" with the "realisation that for the sake of European security, it needs to show that it invests in its partnerships and relationships with Europeans, especially those on the eastern flank". 'A big wasted opportunity' But the other major hurdle for the two to advance a common defence agenda at the EU level is the stark difference in their respective fiscal space. Germany's debt-to-Gross Domestic Product (GDP) ratio stood at 62.3% in the first quarter of the year. France's was at 114.1%, well above what the bloc's rules mandate (60%). This structural divergence means that as European countries aim to significantly ramp up their defence spending and military capabilities to deter a possible Russian attack towards the turn of the decade, Germany can afford to invest heavily in defence, while France cannot. For instance, Germany has asked to make use of a proposal by Brussels to loosen fiscal rules for defence spending, something France, which is targeted by an excessive deficit procedure, cannot do. France, which has consistently invested in defence over the last few decades, has less ground to cover, so to speak, but the sums advanced by the German government (including a €500 billion fund to boost the military and the country's infrastructure) should mean it catches up quickly. But their public finances also "fundamentally place them on different sides of negotiating tables" at the EU level, Kirkegaard said. The European Commission has put forward a plan to rearm Europe that it hopes will prompt member states to invest up to €800 billion before 2030. But most of that money is expected to come from member states' coffers, which in the case of France, are quite depleted. Given the scale of the task ahead, the Commission has been asked to come up with "innovative" financing options for defence. Macron has called for one of those options to be joint EU borrowing, something Germany has flat-out rejected. For Kirkegaard, this means that the crisis ushered in by Russia's war on Ukraine, is "a big wasted opportunity" for the bloc. "This crisis, the war in Ukraine, will not lead to materially more EU institutional or fiscal integration. It will lead to an expansion of the EU with Ukraine and maybe other countries but that's a different type of change to the EU and that's also very different than the last many big crises we've had," he said.

E3 leaders make renewed call for ceasefire in Gaza amid hunger deaths
E3 leaders make renewed call for ceasefire in Gaza amid hunger deaths

Euronews

time2 hours ago

  • Euronews

E3 leaders make renewed call for ceasefire in Gaza amid hunger deaths

The leaders of France, Germany, and the United Kingdom, known as the E3, on Saturday issued a new call for an end to the Gaza war, describing the situation in the besieged enclave as appalling. According to a UK government statement, the three leaders, Prime Minister Keir Starmer, President of France Emmanuel Macron, and Chancellor of Germany Friedrich Merz, spoke Saturday morning by phone. They emphasised the urgent need for an immediate ceasefire, for Israel to lift all restrictions on aid, and for those suffering in Gaza to receive food they so desperately need, the statement said. They discussed their "intention to work closely together on a plan, building on their collaboration to date, which would pave the way to a long-term solution and security in the region," the statement added. Saturday's call follows that of Friday, where the European allies called for an immediate ceasefire, saying that "withholding essential humanitarian assistance to the civilian population is unacceptable." What could the E3 nations' action be? The leaders stated that they "stand ready to take further action to support an immediate ceasefire and a political process that leads to lasting security and peace for Israelis, Palestinians, and the entire region," but did not specify what that action may be. On Thursday, French President Emmanuel Macron announced that his country will become the first major Western power to recognise a Palestinian state, drawing a backlash from the US and Israel. It is unclear what the action will be from the other nations in the E3, but what is known is that the UK has historically been hesitant to recognise a Palestinian state for fear of upsetting its allies, the US and Israel, while Germany, due to its past, mostly finds it inappropriate to strongly criticise Israel. In Friday's joint statement, the leaders urged all parties to bring an end to the conflict and also called for an unconditional release of all hostages who have been held captive by Hamas since 7 October 2023. While their call comes amid a breakdown of ceasefire talks between Israel and Hamas, which hit a standstill after the US and Israel recalled their negotiating teams on Thursday, Starmer, Macron, and Merz stressed that the disarmament of Hamas remains imperative. "Hamas must have no role in the future of Gaza. We reaffirm our commitment to supporting the diplomatic efforts of the United States, Qatar, and Egypt," Friday's joint statement said. Gaza hunger deaths rising This week, the world has woken up to grim images of children suffering malnutrition and dying from starvation in Gaza. The images come after experts have long warned that Gaza is being pushed closer to famine after months of Israel entirely blocking food or letting in only limited amounts. Israel says it has allowed around 4,500 aid trucks into Gaza since lifting its total blockade in May. But the UN World Food Programme (WFP) says nearly one in three people in Gaza has not been eating for days at a time, warning that malnutrition is rising, with around 90,000 children and women now in need of urgent treatment. In the past three weeks, at least 50 people have died of causes related to malnutrition, including 28 adults and 22 children, according to the Gaza Health Ministry. That's up from 12 children who died in the five previous months of 2025, according to the ministry. UK to airdrop aid in Gaza In its defence, Israel argues that it allows enough aid to enter and blames UN agencies for not doing more to retrieve and deliver it to those in need. As the country faces mounting international outcry and backlash over the worsening hunger crisis in Gaza, media reports claimed that Israel will permit foreign nations to airdrop aid into Gaza beginning Friday. On Saturday, British Prime Minister Keir Starmer said the UK will be taking forward plans to work with partners such as Jordan to air-drop aid and evacuate children requiring medical assistance. In its statement on the call with Macron and Merz, Starmer said they all agreed it would be "vital to ensure robust plans are in place to turn an urgently needed ceasefire into lasting peace." Once this plan was worked up, they would seek to bring in other key partners, including those in the region, to advance it, the UK statement stated.

US tariff tussles stuff of nightmares for Bordeaux winemakers
US tariff tussles stuff of nightmares for Bordeaux winemakers

France 24

time2 hours ago

  • France 24

US tariff tussles stuff of nightmares for Bordeaux winemakers

In southwestern France, around the Bordeaux region's famed vineyards, months of talk on what US President Donald Trump will decide on tariffs have been the stuff of nightmares for producers as they look on helplessly. The United States is by far the top export market for Bordeaux's wine, accounting for 400 million euros ($470 million) worth of annual sales -- or about 20 percent of the total. China lags behind with 300 million euros ahead of the United Kingdom with 200 million. Sunday's announcement of a trade deal between the United States and the European Union did not clear up what tariffs European wine and spirits producers will face in the United States. While Trump said European exports face 15 percent tariffs across the board, both sides said there would be carve-outs for certain sectors. EU head Ursula Von der Leyen said the bloc still hoped to secure further so-called "zero-for-zero" agreements, notably for alcohol, which she hoped to be "sorted out" in the coming days. Philippe Tapie, chairman of regional traders' union Bordeaux Negoce, which represents more than 90 percent of the wine trade in the Bordeaux area, is worried by the uncertainty. "One day, it is white, the next it is black -- the US administration can change its mind from one day to the next and we have no visibility," he told AFP. In mid-March, Trump had threatened Brussels with 200 percent tariffs on alcohol in response to a proposed EU tax on US bourbon. Then in April he brandished a new threat of 20 percent across the board on EU products, a threat ultimately suspended. Since then, the level first held at ten percent but, in late May, the US leader threatened to revert to 50 percent before pivoting to 30 percent starting August 1st, the deadline for the negotiations with the EU that led to a preliminary accord after Trump and Von der Leyen met in Scotland on Sunday. In vino, veritas is unpredictability "At 10 percent or 15 percent, we'll find solutions. At 30 percent, no. End of story," Tapie warned just ahead of the announcement as he criticised a "totally unpredictable American administration". To export wine, "there's a minimum of 30 days by boat. If you go to California, it's 60 days. We can't think in terms of weeks," says Tapie, who says he has "never been confronted with such a situation" in 30 years of business. Twins Bordeaux, one of Bordeaux's leading wine merchants, also laments the tariffs' impact. "The American market represents about a third of our turnover, or around 30 million euros," explains Sebastien Moses, co-director and co-owner of Twins, which usually ships upwards of a million bottles a year to the United States. Since January, "our turnover must have fallen by 50 percent compared to last year," he says. "So far, we've managed to save the situation, because as soon as Donald Trump was elected we anticipated this and sent as much stock as possible to the US," explains Moses, though longer term he says this is not a "stable" strategy. Fly it out? As an attempted work around Twins Bordeaux even shipped cases of around 10,000 bottles by air in March. "But only very expensive wines, at no less than 150-200 euros per bottle, because by air it's at least two and a half times the price of shipping by sea," he said. For Bordeaux wine merchant Bouey, the US market represents less than 10 percent of its exports. "We have long since undertaken a geographical expansion. Faced with the global chaos, commercial strategies can no longer be based on a single- or dual-country strategy," Jacques Bouey, its CEO, told AFP in April. The tariffs come with the industry already struggling with declining consumption that has led to overproduction and a collapse in bulk prices. By early 2023, a third of Bordeaux's approximately 5,000 wine growers admitted to being in difficulty. © 2025 AFP

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store