EU agrees to launch countermeasures against U.S. tariffs

The European Union will launch its first countermeasures against U.S. President Donald Trump's tariffs next week, the bloc's members agreed on Wednesday, joining China and Canada in responding and escalating a global trade conflict.

The approval came on the day that Trump's "reciprocal" tariffs on the EU and dozens of countries took effect, including massive 104 percent duties on China, extending his tariff onslaught and spurring more widespread selling across financial markets.

The 27-nation bloc faces 25 percent import tariffs on steel and aluminum and cars as well as the new broader tariffs of 20 percent for almost all other goods under Trump's policy to hit countries he says impose high barriers to U.S. imports.

The EU will put in place duties on a range of U.S. imports from next Tuesday in response specifically to the U.S. metals tariffs. The bloc is still assessing how to respond to the car and broader levies.

The U.S. imports include maize, wheat, barley, rice, motorcycles, poultry, fruit, wood, clothing and dental floss. They totalled about $23 billion last year, meaning the EU's retaliation will be against goods worth less than the $28.6 billion of EU metals exports hit by U.S. tariffs.

They are to enter force in stages - on April 15, May 16 and a final stage on almonds and soy beans on December 1.

"These countermeasures can be suspended at any time, should the U.S. agree to a fair and balanced negotiated outcome," the European Commission said in a statement.

Committee of experts

A committee of trade experts from the EU's 27 countries voted on Wednesday afternoon on the Commission's proposal. EU diplomats said that 26 EU members had voted in favor, with only Hungary against.

The result of the vote was widely expected given the Commission has already canvassed EU members and refined an initial list from mid-March, removing U.S. dairy and alcoholic drinks.

Major wine exporters France and Italy had expressed concern after Trump threatened to hit EU wine and spirits with a 200 percent tariff if the EU went ahead with its planned 50 percent duty on bourbon.

Trump has already responded to Beijing's counter-tariffs announced last week, nearly doubling duties on Chinese imports. In response to that, China said it would impose 84 percent tariffs on U.S. goods from Thursday.