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EU Plans Tariff Retaliation on $107B in U.S. Goods Amid Trade Tensions

EU Plans Tariff Retaliation on $107B in U.S. Goods Amid Trade Tensions. Source: AP/Virginia Mayo

The European Commission has proposed retaliatory tariffs on up to €95 billion ($107.2 billion) worth of U.S. imports if talks fail to resolve ongoing trade tensions stemming from U.S. President Donald Trump’s tariff policies. The potential measures, targeting U.S. products such as wine, aircraft, cars and parts, chemicals, health products, and machinery, are a response to U.S. import duties on EU steel, aluminum, and automobiles, as well as a 10% "reciprocal" tariff on most other EU goods that could rise to 20% in July.

EU Commission President Ursula von der Leyen emphasized the bloc’s preference for a negotiated solution, but confirmed preparations for all scenarios. The Commission is launching a public consultation until June 10, inviting feedback from EU member states and businesses before finalizing the counter-tariffs.

Currently, U.S. tariffs affect €380 billion in EU exports, representing 70% of EU-U.S. goods trade. That figure could rise to 97% if further U.S. probes into pharmaceuticals, semiconductors, and critical minerals lead to more tariffs. The EU has avoided including sensitive sectors like pharmaceuticals and semiconductors in its own list to prevent further escalation.

Previously approved EU duties on €21 billion of U.S. goods, including wheat, motorcycles, and clothing, were suspended after a temporary pause by the U.S. administration. EU exports to the U.S. totaled €532 billion in 2024, while imports stood at €335 billion, limiting the EU's scope for retaliatory measures.

The Commission is also considering export restrictions on €4.4 billion worth of steel scrap and chemical products to prevent market imbalances. Meanwhile, it plans to file a formal complaint with the World Trade Organization. U.S. Vice President JD Vance confirmed ongoing negotiations, pressing the EU to reduce trade barriers.

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