ESCALATION: EU to Impose Tariffs on $3.2 Billion of U.S. Goods Starting Friday

The European Union will begin implementing tariffs on €2.8 billion ($3.2 billion) worth of goods imported from the U.S. on Friday, the European Commission said this morning.

The "rebalancing measures" is the economic ignorant response to the U.S. imposing respective tariffs of 25% and 10% on aluminum and steel imports from the EU on June 1, the commission said.

Agricultural goods and other U.S. products will also be hit with levies.

"The rules of international trade, which we have developed over the years hand in hand with our American partners, cannot be violated without a reaction from our side," Cecilia Malmström, the European Union's trade commissioner, said in a statement.

Our response is measured, proportionate and fully in line with WTO rules," Cecilia Malmström, the European Union's trade commissioner," she went on to say.

The response will hurt EU consumers. Open trade is always the best policy decision even when it is unilateral.

The EU may impose tariffs on another €3.6 billion worth of U.S. goods "at a later stage -- in three years' time or after a positive finding in WTO dispute settlement if that should come sooner."

-RW