EU Prepares €95 Billion Retaliatory Tariffs Against US Amid Trade Tensions

The European Union unveiled a €95 billion ($107.2 billion) package of potential retaliatory tariffs on U.S. imports on Thursday, escalating its response to trade measures imposed by the Trump administration.

The European Commission, which oversees trade policy for the 27-nation bloc, outlined the measures as a fallback if negotiations with Washington fail.

Targeting Key U.S. Industries

The proposed tariffs would hit U.S. goods including wine, fish, aircraft, car parts, chemicals, electrical equipment, health products, machinery, soybeans, meats, bourbon, sewing machines, and airplane parts.

This follows U.S. tariffs of 25% on EU steel, aluminum, and cars, plus 10% “reciprocal” tariffs on most other EU goods, which may rise to 20% after a 90-day pause ends on July 8.

The Commission noted that U.S. tariffs currently impact €380 billion, or 70%, of EU exports to the U.S., a figure that could reach 97% with further U.S. investigations into sectors like pharmaceuticals and semiconductors.

Consultation and WTO Dispute in Motion

The EU has initiated a month-long consultation with member states and businesses to finalize the tariff list.

Additionally, the bloc plans to file a World Trade Organization dispute against the U.S., challenging both the across-the-board tariffs and duties on cars and car parts.

These actions are on hold as the EU prioritizes a negotiated solution.

A Push for Dialogue Amid Rising Tensions

“We believe there are good deals to be made for the benefit of consumers and businesses on both sides of the Atlantic,” said Ursula von der Leyen, president of the European Commission.

“At the same time, we continue preparing for all possibilities, and the consultation launched today will help guide us in this necessary work.”

The announcement coincided with the U.S. unveiling a trade deal with Britain on Thursday, underscoring the shifting global trade landscape.

The EU’s strategy builds on prior actions, including a suspended €21 billion tariff plan from April targeting U.S. maize, wheat, motorcycles, and clothing in response to U.S. metals tariffs.

This earlier measure was paused as a goodwill gesture after the Trump administration announced its 90-day tariff delay, applying only a 10% duty temporarily.

However, the EU remains vigilant, preparing broader retaliation to have legal plans ready “in case negotiations with the U.S. do not produce a satisfactory result,” according to the European Commission.

EU officials also hinted at the possibility of targeting U.S. services, such as cloud computing and social media, if the trade dispute deepens, though they view this as a last resort while focusing on dialogue.