EU Eyes Taxes on Harleys and Bourbon

March 7, 2018 International Tax Cooperation

taxes on harleyWASHINGTON D.C. – A tax war is brewing between the USA and the EU, as a threat to tax EU steel leads to a threat to tax bourbon and Harley Davidson imports.

Earlier this week the EU Commissioner for Trade, Cecilia Malmström, indicated that the EU may retaliate against the US’s threat of import taxes on metal.

The retaliatory taxes will come in the form of targeted levies in the import of items manufactured in the USA.

The items in questions are specifically chosen to cause political pressure against the Trump administration.

Among the items to be taxed are bourbon, orange juice, jeans, t-shirts. Cosmetics, motorbikes, pleasure boats, steel, industrial products, and corn.

The goods chosen are produced in key political states or swing states or are associated with manufacturers which hold political sway or are already outspoken against trade taxes.

The EU taxes come as a retaliation against President Trump’s threat to enact a 25 percent tax on steel imported from the EU and a 10 percent tax on aluminium.

Following the EU’s announcement of its own tax hikes, President Trump went on to say that he would retaliate further by enacting further taxes on the import of European cars.