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Thu, May

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Europe is preparing to impose tariffs on Harley-Davidson motorbikes, bourbon whiskey and Levi's jeans in retaliation for President Donald Trump's planned taxes on steel and aluminum imports.

European Commission President Jean-Claude Juncker identified the products as targets for "counter measures" the European Union has been preparing, a Commission spokesperson told CNN.

Trump said Thursday that he would impose a 25% tariff on steel imports and a 10% tariff on aluminum imports, a move that has been vociferously condemned by key US allies and trading partners.

The EU said earlier its response would be swift, firm and proportional.

Harley-Davidson declined to comment on the European Commission's decision Friday, but Levi issued a statement voicing support for free trade.

"We support open markets and free trade where everyone plays by the rules; these measures will not only hurt American brands and workers but also have reverberations across the global economy," a company spokesperson said.

The justification for the tariffs - national security concerns -- also drew harsh criticism. German Foreign Minister Sigmar Gabriel described the administration's reasoning as "incomprehensible."

"The EU must respond decisively to US punitive tariffs, which endangers thousands of jobs in Europe. There should be no doubt about that in Washington," Gabriel said.

Alexander Winterstein, a spokesman for the European Commission, told reporters the 28 countries of the EU would respond to the tariffs as a single bloc. The Commission will discuss its response next Wednesday.

The EU could also introduce "safeguard measures" if it suddenly sees a surge in steel imports. These measures could include tariffs or import quotas and can be enacted quickly, Winterstein said.

Another obvious move would be to file a complaint against the US with the World Trade Organization. Analysts at UBS said Europe would have a good chance of winning, but that could take 18 months.

"If the EU wins, it could impose more economic sanctions on the US," said Peter Holmes, a trade expert at the University of Sussex.

The WTO ruled against the US when the Bush administration introduced steel tariffs in 2002. The US then lifted those tariffs, under threat of sanctions on oranges from Florida and textiles from North Carolina.

 

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