EU considers €95 billion in tariffs on US imports if trade negotiations stall

The European Commission has proposed potential countermeasures on up to €95 billion worth of US goods should ongoing trade negotiations with Washington fail to resolve current tariff disputes.

The European Commission announced on Thursday that it may impose countermeasures on as much as €95 billion worth of US imports if discussions with Washington do not lead to the removal of existing US tariffs. These tariffs, introduced during the previous US administration, include duties on steel, aluminum, cars, and a wide range of other goods.

The proposed EU measures - intended as a reciprocal response - would cover sectors such as U.S. wine, fish, aircraft, vehicles and auto parts, chemicals, electrical equipment, health products, and machinery. The Commission, which is responsible for the EU’s trade policy, has launched a one-month consultation to gather feedback from member states and businesses before finalizing any decision. It noted that the final list of counter-tariffs would likely apply to a smaller volume of US exports.

The proposal coincides with expectations of a trade agreement announcement between the US and the United Kingdom. Meanwhile, the EU continues to emphasize its preference for resolving trade differences through dialogue, although it aims to be prepared for possible retaliatory action by July if no solution emerges.

Earlier this year, the EU had approved tariffs - mostly at 25% - on $21 billion worth of US goods such as maize, wheat, motorcycles, and apparel. These duties were suspended in response to a 90-day pause declared by the US, signaling a willingness to revisit tariff policy.

According to the Commission, existing US tariffs currently affect approximately €380 billion -roughly 70% of EU exports to the United States. This figure could rise to 97% depending on the outcome of further US investigations into areas such as pharmaceuticals, semiconductors, critical minerals, and trucks.

U.S. Vice President JD Vance stated on Wednesday that constructive discussions are ongoing and emphasized that Washington is encouraging the EU to reduce its own tariffs and regulatory barriers in the interest of improving bilateral trade relations.

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