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EU May Delay First Counter-tariffs against US to Mid-April

FILE PHOTO: European Union flags flutter outside the European Commission headquarters in Brussels, Belgium August 21, 2020. REUTERS/Yves Herman/File Photo
FILE PHOTO: European Union flags flutter outside the European Commission headquarters in Brussels, Belgium August 21, 2020. REUTERS/Yves Herman/File Photo
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EU May Delay First Counter-tariffs against US to Mid-April

FILE PHOTO: European Union flags flutter outside the European Commission headquarters in Brussels, Belgium August 21, 2020. REUTERS/Yves Herman/File Photo
FILE PHOTO: European Union flags flutter outside the European Commission headquarters in Brussels, Belgium August 21, 2020. REUTERS/Yves Herman/File Photo

The European Union could delay imposition of a first set of counter-measures against the United States over President Donald Trump's steel and aluminium tariffs until mid-April, European Trade Commissioner Maros Sefcovic said on Thursday.

The European Commission had proposed re-imposing tariffs on 4.5 billion euros ($4.9 billion) of US products on April 1, followed by hitting a further 18 billion euros of US goods on April 13, Reuters said.

"We are now considering to align the timing of the two sets of EU counter-measures so we can consult with member states on both lists simultaneously, and this would also give us extra time for negotiations with our American partners," Sefcovic told a hearing at the European Parliament.

The first set of EU counter-measures includes applying a 50% tariff on US bourbon. Trump threatened to slap a 200% tariff on all wines and other alcoholic products coming from the EU if the bloc went ahead with this.

The Trump administration is also planning further tariffs on April 2.

French Prime Minister Francois Bayrou said on Sunday that the EU was probably mistaken in targeting American whiskey, while Italian Prime Minister Giorgia Meloni cautioned EU partners on Tuesday against escalating the trade dispute with the United States.

"I am not certain that responding to tariffs with more tariffs is necessarily a good deal," Meloni, who is close to Trump, said.

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Despite Global Challenges, Saudi Arabia Continues Economic Diversification Efforts

Riyadh (SPA)
Riyadh (SPA)
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Despite Global Challenges, Saudi Arabia Continues Economic Diversification Efforts

Riyadh (SPA)
Riyadh (SPA)

As global economic challenges intensify—driven by fluctuations in interest rates, trade policies, and geopolitical tensions—Saudi Arabia continues to advance steadily towards diversifying its economy through its Vision 2030.
This ambitious initiative has bolstered key sectors such as tourism, industry, and technology, leading to significant progress, despite the ongoing need for further reforms and investments to ensure sustainability and competitiveness.
In this context, S&P Global upgraded Saudi Arabia's long-term sovereign credit rating from “A” to “A+” in March 2024, citing strong growth in the non-oil sector and the development of local capital markets.
Saudi Arabia’s economy regained momentum in 2024, growing by 1.3%, with a notable surge of 4.4% in the fourth quarter—the highest in the past two years. This growth was primarily driven by a 4.3% increase in non-oil activities.
Saudi Arabia is adopting a multi-pronged approach to achieve economic diversification, as confirmed by former International Monetary Fund official Tim Cullen during a virtual seminar hosted by the Saudi Economic Association.
This strategy includes financial market reforms, the introduction of tourist visas, legal system development, the implementation of VAT, and energy price increases.
Efforts are also underway to enhance infrastructure through investments in airports, ports, railways, metro systems, and digital infrastructure, alongside major government projects like Neom and Qiddiya.
“Large-scale projects play a crucial role in achieving economic diversification. They attract foreign direct investment, enhance competition, improve product quality, and increase corporate profits,” Dr. Abdullah Almeer, Assistant Professor of Economics at King Fahd University of Petroleum and Minerals, told Asharq Al-Awsat.
“These projects also accelerate economic transformation and encourage the private sector to actively participate in production,” he explained.
Almeer noted that this strategy is not new to Saudi Arabia, citing significant government investments in the petrochemical sector during the 1970s and 1980s, which prompted the private sector to enter the field and drive its growth.
Economic diversification involves reducing reliance on a single sector as the main source of income—an essential step for resource-dependent economies like Saudi Arabia, given the volatility of oil prices and the global shift towards alternative energy.
Diversification is typically measured by the spread of exports, production, government revenues, and employment opportunities.