EU plans tariffs on 100 billion euros of US goods if talks fail, Bloomberg News reports
A European Union flag flutters outside the EU Commission headquarters, in Brussels, Belgium, February 1, 2023 REUTERS/Yves Herman/File Photo Purchase Licensing Rights , opens new tab
May 6 (Reuters) - The European Union plans to hit about 100 billion euros ($113.26 billion) worth of U.S. goods with additional tariffs if trade talks fail to deliver a satisfactory result for the bloc, Bloomberg News reported on Tuesday.
The proposed retaliatory measures will be shared with member states as early as Wednesday and consultations will last for a month before the list is finalized, the report said, citing people familiar with the matter.
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($1 = 0.8829 euros)
Reporting by Devika Nair in Bengaluru; Editing by Andrew Heavens
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If they must help sectors that are particularly hurt by 10pc tariffs, then I would use the tax system so the benefits are broadened. Scottish whisky will no doubt find it harder to compete in the United States, so why not cut alcohol duty for spirits by a commensurate amount to the extra tariff costs they face? Those companies crying out for help would benefit, but so too would consumers here. I would also look closely at a reduction in VAT. This could be temporary and possibly just on business and domestic energy bills. Labour actually proposed cutting VAT on domestic energy in opposition, so you never know. Either way, it would help reduce costs for all businesses and households alike, while temporarily reducing inflation. I would add to this fiscal boost with a unilateral approach to our own tariff regime, cutting the cost of goods for business and consumers alike. This sort of fiscal industrial strategy that would cut the cost of doing business for everyone would be much more effective than the cherry-picking subsidy-led approach we are starting to see from this Prime Minister. But I know this approach won't be taken because to fund it all would require cutting spending still further, including going much further on welfare reform. The botched handling of the Spring Statement has meant that this is nearly impossible for this Government. So instead, we're stuck with the 'Old Labour' ways of picking winners and getting the rest of us to pick up the tab.
