Wed, 12 Mar 2025

Wed, 12 Mar 2025 EU braces for higher prices as US trade war ramps up

For consumers, higher prices loom on supermarket shelves, but for businesses and industry the risks are higher.

* The EU's initial countermeasures against US tariffs on steel and aluminium will take effect on April 1, targeting $22bn (£26bn) of US exports.
* The products affected include jeans, motorbikes, peanut butter, bourbon, and other consumer goods.
* In mid-April, the EU may impose further measures, including tariffs on textiles, home appliances, food, and agricultural products, such as meat, dairy, fruit, wine, spirits, toilet seats, wood, coats, swimwear, nightdresses, shoes, chandeliers, and lawnmowers.
* For consumers in Europe, higher prices are expected for American products, particularly on supermarket shelves.
* Businesses and industries, especially steel, face significant risks due to the tariffs and potential retaliation.
* The EU is warning that some US states may be affected more than others, with soybeans from Louisiana and meat from Nebraska and Kansas among those targeted.
* The drinks sector will be hit hard, with EU and US producers standing united against the tariffs.
* Experts warn that prices for China-made smartphones, TVs, and laptops could rise in the US and elsewhere due to trade tensions.
* Germany's central bank president fears that US tariffs and retaliation could tip Europe's largest economy into recession again.
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