Financial Times : Targeting iconic American products such as Harley-Davidson motorbikes and bourbon in the fight against US president Donald Trump’s first round of transatlantic tariffs was just a start — the EU is now eyeing humble staples such as ketchup.
European officials said the much-loved tomato sauce condiment is one of dozens of products set to be included on an €18bn retaliation list being drawn up by the European Commission as it prepares for a decision by Mr Trump to hit EU cars and car parts with punitive duties.
Other items likely to be included on the list include frozen fish, raisins, suitcases and even adhesive bandages.
The EU is bracing itself for a decision by the US in the coming weeks on whether imported cars and car parts constitute a national security threat. The investigation follows repeated complaints from Mr Trump that the US car industry is treated unfairly and his threats to impose a 20 per cent tariff on car imports.
The EU now charges a 10 per cent tariff on imported passenger vehicles that is higher than the 2.5 per cent duty applied by the US, although the US also has a 25 per cent tariff on light trucks. Such treatment, Mr Trump argues, has led to a $151bn trade deficit in 2017 with the EU. Mr Trump earlier this year applied tariffs to steel and aluminium imports from the EU as part of a broader crackdown on metals imports, prompting the EU to retaliate against €2.8bn worth of US goods. Those tariffs prompted Harley-Davidson to announce that it was moving some production outside the US to avoid the EU tariffs.
