Newsletters
The European Commission said Thursday that the EU plans to impose countermeasures on U.S. imports—particularly targeting cars and planes—if trade talks with the Trump administration break down.
The proposed measures would cover a broad range of American products, including wine, fish, chemicals, electrical equipment, healthcare products, and machinery. According to the Commission, these imports from the U.S. amount to approximately €95 billion ($107 billion) annually.
The EU also announced plans to file a formal complaint with the World Trade Organization (WTO) in response to what it described as Trump’s “swingeing” tariffs on European goods.
In April, then-U.S. President Donald Trump introduced a 20% “reciprocal” tariff on most EU goods, aimed at matching the EU’s own import duties. However, implementation of this measure was delayed until July, along with additional tariffs on dozens of other countries.
Despite the pause, a “baseline” tariff of 10% remained in place on imports from most countries, including the 27-member European Union.
While the EU has signaled its willingness to reach a negotiated deal to prevent a full-scale trade war, it has prepared a retaliation plan should Trump's tariffs be reinstated.
European Commission President Ursula von der Leyen emphasized the bloc’s commitment to diplomacy, stating:
“The EU remains fully committed to finding negotiated outcomes with the U.S. We believe there are good deals to be made for the benefit of consumers and businesses on both sides of the Atlantic.”
Trump also introduced 25% tariffs on steel, aluminum, and cars imported into the U.S.
In response, Brussels initially drafted a €21 billion list of retaliatory tariffs targeting a wide range of American goods. These measures were postponed until July 14 to allow time for negotiations.
The European Commission released a 218-page document outlining the products it may target, including U.S.-made aircraft, automobiles, human hair, nuts, fruit, plastics, chemicals, and electrical equipment. Notably, bourbon whiskey was reintroduced to the list after being excluded from the earlier version to protect European wine and spirits from U.S. retaliation.
Aircraft and automobiles represent the highest-value categories on the list, worth €10.5 billion and more than €12 billion respectively, according to a senior EU official. Plastics and chemicals account for a further €12.9 billion.
The commission warned that if the U.S. fails to back down, it could escalate countermeasures, including actions targeting major American technology companies.
“All options remain on the table,” the official said.
Trump’s announcement of reciprocal tariffs on April 2—affecting dozens of countries, including close allies like the EU and China—initially rattled global markets before he introduced a 90-day pause to allow for negotiations.
Despite visits by senior EU officials to Washington, little progress has been achieved.
The EU also stated it would “soon” initiate a formal WTO dispute process over the auto tariffs and the proposed 20% duties, calling the measures a clear violation of international trade rules.
“It is the unequivocal view of the EU that these tariffs blatantly violate fundamental WTO rules,” the Commission said.
Speaking before the European Parliament, EU trade chief Maroš Šefčovič warned that 70% of the bloc’s total exports to the U.S. already face tariffs between 10% and 25%.
He added that with U.S. trade investigations expanding into sectors like pharmaceuticals and lumber, up to €549 billion worth of EU exports—97% of the total—could eventually be subject to U.S. duties.
1 min read
