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Brussels, Belgium--The European Union has included U.S. diamond imports in its proposed list of products that could face new tariffs next month, a move aimed at countering the United States’ recent trade restrictions on steel and aluminum.

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According to Reuters, the European Commission has drafted a list targeting U.S. goods worth up to 26 billion euros ($28.4 billion) in response to the U.S. government's reinstatement of 25% tariffs on steel and aluminum. Diamonds are among the wide range of U.S. exports that may face additional EU duties, alongside poultry, dairy, wines, clothing, and consumer goods.

Per the report, the EU had previously suspended tariffs on certain U.S. imports following negotiations with the Biden administration. However, with that suspension expiring on March 31, tariffs will automatically be reintroduced on several U.S. products, including steel, aluminum, and bourbon. A second round of duties, expected to be implemented by April 13, will likely affect diamonds and other high-value goods.

As noted by Reuters, EU officials designed the proposed list to target products with economic or symbolic significance, particularly those linked to key Republican-voting U.S. states. While the exact tariff rate on diamonds has not yet been finalized, businesses and industry stakeholders have two weeks to provide feedback before the European Commission submits a final list for approval by EU member states.

The EU may also increase the value of targeted imports to match the full 26 billion euros in U.S. tariffs, depending on further developments in the trade dispute.

Learn more in this Reuters report.