The European Union approved new tariffs worth €21 billion ($23.2 billion) on US goods. This move came in response to the 25 percent duties President Donald Trump placed on the EU’s steel and aluminum exports last month.

Most Member States Supported the Move

On Wednesday, a majority of the EU’s 27 member countries voted in favor of the retaliatory tariffs. Some of these penalties will begin in mid-April. Others will follow in mid-May and later on December 1. The EU designed the tariffs to hit politically sensitive US regions. For example, they targeted soybeans from Louisiana—home to House Speaker Mike Johnson—as well as diamonds, poultry, motorcycles, and various agricultural goods.

Tariff Rates Will Vary

Most items will face a 25 percent tax. However, a few categories will get 10 percent tariffs. Interestingly, the EU removed bourbon from the list. This came after pressure from member states. They feared Trump’s threat to impose 200 percent duties on European wine, champagne, and other alcoholic beverages.

China Also Responds to US Tariffs

At the same time, China raised its tariffs on US imports. It increased the duty from 34 percent to 84 percent. The Chinese finance ministry said the new rates would take effect on April 10.

In a white paper, China’s commerce ministry said: “If the US insists on further escalating its economic and trade restrictions, China has the firm will and abundant means to take necessary countermeasures and fight to the end.”

US Reacts to China's Decision

US Treasury Secretary Scott Bessent called China’s move “unfortunate.” Speaking to Fox Business Network, he said China should not try to devalue its currency to escape the tariff war. He also urged Beijing to join talks and resolve the issue through negotiation.