European Union member states will on Wednesday vote on whether to impose tariffs on a list of U.S. goods in response to President Donald Trump‘s tariffs on the bloc.

Why It Matters

Trump hit EU imports with a 20 percent tariff on April 2, claiming the EU already had tariff measures against the U.S. that equated to 39 percent. This came after he imposed 25 percent tariffs on auto imports, as well as aluminum and steel.

On Monday, Trump rejected an EU offer for a “zero-for-zero” tariff goods deal, setting the stage for these countermeasures to be debated. European Commission President Ursula von der Leyen said the EU would retaliate if the U.S. did not accept the deal. Trump said the EU would have to commit to buying $350 billion of American energy to get respite from his tariffs.

Tariffs affect global supply chains and could increase prices on both sides of the exchange. So far, only China and Canada have imposed retaliatory tariffs on the U.S., raising concerns about a global trade war which could push countries into recession.

What To Know

The 27 EU member states will vote on a list which targets €21 billion worth of goods with 25 percent import tariffs.

According to Reuters, which first reported on the list, goods included on the list range from meat, toiletries, vacuum cleaners, wood and clothing. Newsweek has not independently obtained the list and has contacted the EU by email to comment on this story.

Bourbon and wine were originally on the list until France, Italy and Ireland questioned their inclusion, expressing concern that they would damage the drinks industry.

What People Are Saying

Speaking to Newsweek, Scott Lucas, a professor in international politics at University College Dublin, said the tariffs will cause “some level of response from the United States.” He added that the EU can’t let the Trump administration act like “bullies” and not respond to their tariffs but the EU should “calibrate it to try limit the effect on European consumers, manufacturers and farmers.”

Ursula Von der Leyen said the EU is “now preparing for further countermeasures to protect our interests and our businesses if negotiations fail,” after the U.S. imposed a 20 percent tariff on EU imports.

Speaking to reporters in the Oval Office on Monday, Donald Trump said: “The European Union‘s been very bad to us; they don’t take our cars, like Japan in that sense, they don’t take our agricultural products, they don’t take anything practically, yet they send millions of cars a year, Mercedes-Benz, Volkswagen, BMWs, they’re sending millions and millions of cars into the U.S.

“We have a deficit with the European Union of $350 billion and it’s going to disappear fast, and one of the ways that that can disappear easily and quickly is they’re going to have to buy our energy from us because they need it.”

What Happens Next

If approved, a first set of EU tariffs will take effect on April 15 and a second will come into effect on May 16. It is expected that the vote will pass.