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illuminem summarises for you the essential news of the day. Read the full piece on POLITICO or enjoy below:
🗞️ Driving the news: The European Commission is preparing to impose retaliatory tariffs of up to 25% on €22.1 billion worth of U.S. exports in response to new steel and aluminum duties enacted by President Donald Trump
• Targeted goods include key agricultural and industrial products such as soybeans, orange juice, rice, textiles, and metals
• The tariffs could take effect as early as May 16, pending a vote by EU member states on Wednesday
🔭 The context: This move marks a sharp escalation in transatlantic trade tensions after the U.S. reintroduced tariffs on European steel and aluminum last month
• The EU's response echoes a similar trade conflict during Trump's first term in office, when the bloc imposed retaliatory duties following U.S. protectionist measures under Section 232 of the Trade Expansion Act
• Member states, notably France, Italy, and Ireland, negotiated to shield specific products—such as bourbon whiskey—from the new tariff list to avoid triggering further U.S. reprisals
🌍 Why it matters for the planet: Trade tensions risk undermining global cooperation on sustainability, including climate-aligned trade frameworks like the Carbon Border Adjustment Mechanism (CBAM)
• Tariff escalation also disrupts agricultural and industrial supply chains, potentially hampering the flow of lower-emissions goods
• Moreover, it diverts political capital away from transatlantic collaboration on clean energy and environmental regulation
⏭️ What's next: EU member states will vote on the proposed countermeasures this Wednesday
• If approved, the first wave of tariffs will come into force mid-May, with a second tranche targeting goods like almonds due in December
• The EU is also expected to keep diplomatic channels open, though trade retaliation may prompt further U.S. responses
• Broader implications could unfold at the WTO or during upcoming G7 and OECD negotiations on trade and climate policy
💬 One quote: “This is a proportionate and strategic response designed to defend European industries and signal that unilateral tariffs will not go unanswered,” - an unnamed EU diplomat involved in the discussions
📈 One stat: €22.1 billion – the total annual value of U.S. exports targeted by the EU's proposed tariffs, based on 2024 trade figures
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