European Commission sets out possible €95bn response to US tariffs
EU repeats that it would prefer a negotiated solution but is also looking into export curbs and a WTO complaint
08 May 2025 - 18:03
by Philip Blenkinsop
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Brussels — The European Commission on Thursday proposed countermeasures on up to €95bn of US imports if negotiations with Washington fail to remove the series of tariffs applied by US President Donald Trump.
The new measures, representing the EU’s response to US import tariffs on cars and its broader “reciprocal” tariffs, would target US wine, fish, aircraft, car and car parts, chemicals, electrical equipment, health products and machinery.
The European Commission, which co-ordinates trade policy for the 27-nation EU, said it was launching a public consultation to June 10 for EU members and businesses to react. It will then take a final decision on its counter-tariffs, likely to hit a smaller volume of US imports.
“The EU remains fully committed to finding negotiated outcomes with the US,” commission president Ursula von der Leyen said in a statement. “At the same time, we continue preparing for all possibilities.”
The announcement of a new list of products the EU may target comes on the day Trump is expected to announce a trade deal between the US and Britain.
The EU faces 25% US import tariffs on its steel, aluminium and cars and so-called “reciprocal” tariffs of 10% for almost all other goods, a levy that could rise to 20% after Trump’s 90-day pause expires on July 8.
The commission, which co-ordinates trade policy for the 27 EU members, has repeatedly said it would prefer a negotiated solution to tit-for-tat tariffs, but wants to have a retaliatory response ready for July in case no solution is found.
The bloc in April approved duties mostly of 25% on US imports amounting to €21bn, including maize, wheat, motorcycles and clothing. These, a response to US metals tariffs, were suspended before entering force, after Trump announced his 90-day pause.
The commission has said US tariffs now covered €380bn or 70% of EU goods trade to the US and that could rise to 97% after further US investigations into pharmaceuticals, semiconductors, critical minerals and trucks.
The EU has not included pharmaceutical products or semiconductors on its list.
The commission is encouraging affected businesses to submit their views. At a consultation in March into the EU’s countermeasures against US metals tariffs, the commission received 660 responses.
The potential EU countermeasures do not match the volume of products covered by US tariffs because the EU imports are far less than its goods exports to the US — at €335bn in 2024 vs €532bn of exports.
EU officials said the bloc wanted to deliver a proportionate response that did not escalate the conflict.
The US does have a trade surplus with the EU in services.
The commission said it was also looking to placing export restrictions on €4.4bn of steel scrap and chemical products to the US. Scrap, a feedstock for the steel industry, is not covered by the US metal tariffs and there are concerns it could be sold outside the bloc.
The commission said it would launch a complaint at the World Trade Organisation over US tariffs, a procedure that begins with consultations between the parties.
US vice-president JD Vance said on Wednesday that discussions between the US and Europe were ongoing and that Washington was pressing the EU to lower its tariffs and regulatory barriers to improve the trading relationship.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
European Commission sets out possible €95bn response to US tariffs
EU repeats that it would prefer a negotiated solution but is also looking into export curbs and a WTO complaint
Brussels — The European Commission on Thursday proposed countermeasures on up to €95bn of US imports if negotiations with Washington fail to remove the series of tariffs applied by US President Donald Trump.
The new measures, representing the EU’s response to US import tariffs on cars and its broader “reciprocal” tariffs, would target US wine, fish, aircraft, car and car parts, chemicals, electrical equipment, health products and machinery.
The European Commission, which co-ordinates trade policy for the 27-nation EU, said it was launching a public consultation to June 10 for EU members and businesses to react. It will then take a final decision on its counter-tariffs, likely to hit a smaller volume of US imports.
“The EU remains fully committed to finding negotiated outcomes with the US,” commission president Ursula von der Leyen said in a statement. “At the same time, we continue preparing for all possibilities.”
The announcement of a new list of products the EU may target comes on the day Trump is expected to announce a trade deal between the US and Britain.
The EU faces 25% US import tariffs on its steel, aluminium and cars and so-called “reciprocal” tariffs of 10% for almost all other goods, a levy that could rise to 20% after Trump’s 90-day pause expires on July 8.
The commission, which co-ordinates trade policy for the 27 EU members, has repeatedly said it would prefer a negotiated solution to tit-for-tat tariffs, but wants to have a retaliatory response ready for July in case no solution is found.
The bloc in April approved duties mostly of 25% on US imports amounting to €21bn, including maize, wheat, motorcycles and clothing. These, a response to US metals tariffs, were suspended before entering force, after Trump announced his 90-day pause.
The commission has said US tariffs now covered €380bn or 70% of EU goods trade to the US and that could rise to 97% after further US investigations into pharmaceuticals, semiconductors, critical minerals and trucks.
The EU has not included pharmaceutical products or semiconductors on its list.
The commission is encouraging affected businesses to submit their views. At a consultation in March into the EU’s countermeasures against US metals tariffs, the commission received 660 responses.
The potential EU countermeasures do not match the volume of products covered by US tariffs because the EU imports are far less than its goods exports to the US — at €335bn in 2024 vs €532bn of exports.
EU officials said the bloc wanted to deliver a proportionate response that did not escalate the conflict.
The US does have a trade surplus with the EU in services.
The commission said it was also looking to placing export restrictions on €4.4bn of steel scrap and chemical products to the US. Scrap, a feedstock for the steel industry, is not covered by the US metal tariffs and there are concerns it could be sold outside the bloc.
The commission said it would launch a complaint at the World Trade Organisation over US tariffs, a procedure that begins with consultations between the parties.
US vice-president JD Vance said on Wednesday that discussions between the US and Europe were ongoing and that Washington was pressing the EU to lower its tariffs and regulatory barriers to improve the trading relationship.
Reuters
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