The EU on Wednesday adopted its first measures hitting back at President Donald Trump's tariff onslaught, targeting more than 20 billion euros of US products including soybeans, motorcycles and beauty products.
"These countermeasures can be suspended at any time, should the US agree to a fair and balanced negotiated outcome," the European Commission said in a statement issued after EU member states greenlit the measures.
The levies are retaliation for US duties on steel and aluminium imposed last month -- with Europe's response to Trump's latest tariffs salvo yet to be announced.
Duties will start to be collected under the measures on April 15, the commission said.
"The EU considers US tariffs unjustified and damaging, causing economic harm to both sides, as well as the global economy," it added.
Brussels stressed it wanted a deal that "would be balanced and mutually beneficial".
Trump has also slapped a 25-percent tariff on car imports from the EU, and targeted the bloc with so-called reciprocal tariffs of 20 percent.
An EU spokesman said its response to those measures could be unveiled as early as next week.
Wednesday's retaliation measures consist of two parts.
First, the EU will let a set of levies dating from Trump's first term -- but currently suspended -- snap back into place and they will be collected from next Tuesday.
The second step includes a new list of products to target with tariffs, most of which will take effect next month, with some in December.
Approved by 26 EU countries -- with Hungary voting against -- the list of products is weighted towards states held by Trump's Republicans.
The goods targeted include poultry, rice, corn, fruit and nuts, wood, motorcycles, plastics, textiles, paintings and electrical equipment.
China has hiked tariffs to 84 per cent on all US goods, escalating retaliation against President Donald Trump’s 104% tariffs on Chinese exports.
“Additional tariff rates... will rise from 34 percent to 84 percent,” the Chinese finance ministry said, adding the move will take effect from 12:01 pm on Thursday.
Last week, China had set tariffs at 34 per cent but said the new rate was an added countermeasure.
“The US tariff escalation piles mistakes on mistakes and severely infringes on China's rights,” the ministry said, adding that Washington’s actions harm the global rules-based trade system.
Separately, Beijing’s commerce ministry announced it would blacklist six US artificial intelligence firms, including Shield AI and Sierra Nevada Corp.
Trump has not directly responded but urged companies to relocate to the US to avoid tariffs. “This is a GREAT time to move your COMPANY into the United States… DON’T WAIT, DO IT NOW!” he posted on Truth Social.
A white paper released by state media Xinhua said China and the US could resolve trade disputes through “equal-footed dialogue and mutually beneficial cooperation.” However, the commerce ministry warned it would “fight till the end” if Washington continued to escalate trade restrictions.
The tariff hike follows sweeping 10 per cent US duties imposed over the weekend. As of Wednesday, rates on imports from nearly 60 countries, including the EU and Japan, increased further—reaching between 11 and 50 per cent. For China, the total US tariff burden now stands at 104 per cent due to retaliation and new custom rates.
Asian and European shares fell sharply on Wednesday after the US imposed a sweeping 104 per cent tariff on Chinese imports, escalating trade tensions. Japan’s Nikkei 225 led losses, closing down 3.9% at 31,714.03, while Taiwan’s Taiex plunged 5.8%, weighed by tech heavyweights like TSMC (-3.8%) and Hon Hai Precision (-10%).
South Korea’s Kospi lost 1.7%, with the government announcing support for its struggling auto sector. The S&P/ASX 200 in Australia dropped 1.8%, while markets in New Zealand, India (-0.5%), and Thailand (-0.8%) also declined. China’s markets bucked the trend, with the Shanghai Composite gaining 1.3% and the Hang Seng rising 0.4%, after state-linked buying reportedly propped up shares.
In Europe, Germany’s DAX and France’s CAC 40 each shed 2.1%, while London’s FTSE 100 fell 2%. US futures pointed to further weakness, with the S&P 500 down 0.7% and Dow Jones futures off 0.5%.
Markets have been volatile for days amid uncertainty over the US-China trade war. On Tuesday, the S&P 500 dropped 1.6%, erasing an early 4.1% rally, and now sits nearly 19% below its February peak. The Dow slipped 0.8%, and the Nasdaq lost 2.1%. The previous day had seen strong gains across major indices, but optimism faded as tariffs took effect.
Analysts warn of continued market swings and potential recession risks if tariffs persist. However, hopes linger for negotiations. Trump on Tuesday suggested progress with South Korea, saying a “great DEAL” could be possible following talks with its acting president.
(With inputs from AFP)
