The European Commission has unveiled a proposal for significant countermeasures, potentially impacting up to 95 billion euros ($107.2 billion), on imports originating from the United States.
This move comes as a direct response to the series of tariffs imposed by the previous US administration and shows the European Union’s determination to protect its economic interests should ongoing negotiations with Washington fail to yield a resolution.
The newly proposed measures outline a wide range of American goods that could face retaliatory tariffs from the EU. This list includes prominent US exports such as wine, bourbon and other spirits, fish, aircraft, cars and car parts, chemicals, electrical equipment, health products, and various types of machinery.
The EU’s announcement of potential countermeasures comes on the same day that the previous US administration revealed a trade agreement between the United States and Britain. This deal represents the first instance of easing the impact of the global tariff measures initiated by that administration on a key trading partner.
Currently, the EU contends with substantial US import tariffs, including a 25% levy on steel and aluminum, as well as tariffs on cars. Additionally, so-called “reciprocal” tariffs of 10% are applied to almost all other EU goods, a levy that could potentially double to 20% after a previously announced 90-day pause expires on July 8.
In April, the EU had previously approved duties, primarily at a rate of 25%, on US imports totaling 21 billion euros. These targeted goods included maize, wheat, motorcycles, and clothing. These duties were intended as a response to the US tariffs on metals but were subsequently suspended before coming into effect following the US announcement of a 90-day pause on further tariff increases.
The European Union’s Countermeasures
The potential EU countermeasures do not match the total value of products covered by US tariffs. This disparity arises because EU imports from the United States are significantly lower than its goods exports to the US, amounting to 335 billion euros in 2024 compared to 532 billion euros of exports. EU officials have stated that the bloc aims to implement a proportionate response that avoids further escalation of the trade conflict. It is noteworthy that the United States maintains a trade surplus with the EU in the services sector.
The Commission has also indicated that it is exploring the possibility of placing export restrictions on 4.4 billion euros worth of steel scrap and chemical products destined for the United States. Steel scrap, a crucial feedstock for the steel industry, is not currently subject to US metal tariffs, and concerns exist within the EU that this material could be sold outside the bloc if US tariffs remain in place.
Furthermore, the Commission announced its intention to file a complaint with the World Trade Organization (WTO) regarding the US tariffs. This process typically begins with consultations between the involved parties, representing another avenue for the EU to challenge the US trade measures.
Meanwhile, US Vice President JD Vance has said that discussions between the United States and Europe are ongoing and that Washington is actively pressing the EU to reduce its own tariffs and regulatory barriers in an effort to improve the overall trading relationship between the two economic powerhouses.
