On Wednesday, the European Union (EU) announced it would impose retaliatory tariffs on $26 billion of American products starting in April. The tariffs on iconic Harley-Davidson motorcycles will jump from 6% to 56%.
This move responds to the 25% tariffs the U.S. placed on all steel and aluminum exports.
The EU strategically targets goods produced in regions strongly supporting President Donald Trump. Starting April 1, symbolic products such as Kentucky bourbon whiskey, Harley-Davidson motorcycles, and powerboats will face a 50% tariff increase. Other affected items include cranberries, garden umbrellas, tablecloths, and handkerchiefs.
The second round of tariffs, planned for mid-April, will target a broader range of American imports. Potential targets include chewing gum, poultry, beef, white chocolate, soybeans, carpets, and watermelons. Before finalizing the list of tariff items, the EU will consult with its member states and stakeholders.
American steel and aluminum will also face retaliatory tariffs in response to the U.S. measures. According to reports in The Wall Street Journal, EU officials emphasized the political nature of these tariffs. They aim to target Trump’s tariff policy supporters to maximize the political and economic impact on the U.S. while minimizing damage to European businesses and consumers.
EU stated that some retaliatory tariffs are specifically designed to hit Republican states that supported Trump in the last election. Still, they acknowledged that it will inevitably affect Democratic states as well. For instance, the whiskey tariffs target Kentucky and Tennessee, while the motorcycle tariffs focus on Wisconsin.
