The European Union is prepared to impose tariffs on US imports including diamonds, gemstones and metals used in jewelry making in response to “unjustified” taxes President Donald Trump has placed on aluminum and steel entering the US.
“The commission regrets the US decision to impose such tariffs, considering them unjustified, disruptive to transatlantic trade, and harmful to businesses and consumers, often resulting in higher prices,” the EU said last week. “In total, the EU countermeasures could therefore apply to US goods exports worth up to EUR 26 billion ($28.4 billion), matching the economic scope of the tariffs.”
The EU has released a list of products it intends to target from mid-April should the US continue to enforce its new tariffs on aluminum and steel coming into the country from Europe. The items include diamonds, worked, but not mounted or set, excluding industrial diamonds; rubies, sapphires and emeralds that have not been strung, mounted or set; silver; platinum; palladium; precious metal; and imitation jewelry made with a base metal.
However, the EU has noted it is willing to work with the US to find a solution to the tariff war that could see both sides drop some or all of the taxes levied against each other.
“The trade relations between the European Union and the US are the biggest in the world,” said Ursula von der Leyen, president of the European Commission. “The US is applying a 25% tariff on imports of steel and aluminum. We deeply regret this measure. Tariffs are taxes. They are bad for business, and even worse for consumers. These tariffs are disrupting supply chains. They bring uncertainty for the economy. Jobs are at stake. Prices will go up. In Europe and in the United States. In the meantime, we will always remain open to negotiation. We firmly believe that in a world fraught with geopolitical and economic uncertainties, it is not in our common interest to burden our economies with tariffs.
Image: Polished diamonds. (Shutterstock)
