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European Union tariffs on US motorcycles, peanut butter, bourbon go into force

Experts say the risk that the sides could keep adding tariffs could hurt business confidence, weighing indirectly on the economy.
Credit: Scott Olson/Getty Images
Employee motorcycles are parked outside of the headquarters of iconic American motorcycle builder Harley-Davidson on June 1, 2018 in Milwaukee, Wisconsin.

The European Union announced a 25 percent tariff Friday on U.S. products ranging from motorcycles, to steel, bourbon and jeans in retaliation for President Donald Trump's tariffs on imports of EU steel and aluminum.

The EU, a bloc of 28 nations, said the tariffs would go into effect immediately.

The retaliatory tariffs, which also included such typical U.S. products as orange juice, cigarettes, chewing tobacco and peanut butter, seemed aimed at putting pressure on such politically sensitive groups as farmers. The list also included playing cards, which will get hit by a 10 per cent tariff.

The EU charges that Trump broke world trade rules June 1 by slapping 25 percent tariffs on EU steel and 10 per cent on aluminum.

European Commission chief Jean-Claude Juncker said Thursday that the U.S. decision to impose tariffs "goes against all logic and history".

"Our response must be clear but measured. We will do what we have to do to re-balance and safeguard," he said.

EU Trade Commissioner Cecilia Malmstrom said this week that the EU was "left with no other choice" but to impose tariffs of its own after the "unilateral and unjustified decision of the U.S."

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