The European Commission recently proposed countermeasures amounting to 95 billion euros ($107.2 billion) in response to U.S. tariffs. This proposal comes as negotiations with the U.S. fail to yield results regarding the tariffs imposed by former President Donald Trump.
The planned countermeasures would primarily affect a range of U.S. imports, including wine, fish, aircraft, vehicles and their parts, chemicals, electrical equipment, health products, and machinery. As part of the process, the European Commission will initiate a month-long consultation period to allow EU member states and businesses to voice their opinions.
A final decision on the counter-tariffs is anticipated, but it is expected to target a smaller volume of U.S. imports. This announcement coincides with Trump’s expected announcement of a trade deal between the United States and Britain.
Currently, the EU is contending with a 25% tariff on its steel, aluminum, and automotive exports to the U.S., in addition to a 10% reciprocal tariff on nearly all other goods. There are concerns that this levy could increase to 20% after the expiration of Trump’s 90-day pause on July 8.
While the Commission has expressed a preference for resolving the situation through negotiation rather than retaliatory tariffs, it is preparing a resolute response for July should a solution remain elusive. Earlier measures approved by the bloc included 25% duties on various U.S. products totaling 21 billion euros, which were initially suspended after Trump’s postponement announcement.
The Commission has indicated that U.S. tariffs currently cover around 380 billion euros, representing 70% of the EU’s goods trade with the United States. This figure could potentially rise to 97% depending on further investigations into different sectors.
U.S. Vice President JD Vance recently mentioned that discussions continue and that Washington is urging the EU to reduce its tariffs and regulatory hurdles to enhance their trading relationship.