EU announces possible $107 billion response to US tariffs
Reuters reported May 8 that the European Commission proposed countermeasures on up to $107.2 billion of U.S. imports if negotiations with the U.S. fail to remove numerous tariffs applied by President Donald Trump.
The new measures would target several U.S. industries, including the automotive and powersports markets.
The EU’s announcement of a new list of products it might target came on the day Trump announced a trade deal between the U.S. and Britain, the first to soften the impact of Trump’s global tariff policies.
The EU faces 25% U.S. import tariffs on its steel, aluminum, and automotive vehicles and “reciprocal” tariffs of 10% on almost all other goods. The levy could rise to 20% after Trump’s 90-day pause expires on July 8.
The Commission says it would prefer to negotiate the potential tariff war but wants to have a retaliatory response ready for July in case no solution is found.
“The EU remains fully committed to finding negotiated outcomes with the U.S. At the same time, we continue preparing for all possibilities.” — Commission President Ursula von der Leyen
In April, the EU approved duties of mostly 25% on U.S. imports amounting to $23.5 billion, which includes motorcycles and other commodities. These tariffs were suspended before being enforced after Trump announced his 90-day pause.
The Commission has been encouraging affected businesses to submit their views. At a consultation last March on the EU’s countermeasures against U.S. metals tariffs, the Commission received 660 responses.
The potential EU countermeasures do not match the volume of products covered by U.S. tariffs because EU imports are far less than its goods exported to the U.S., at $374 billion in imports in 2024 versus $594 billion of exports.
The Commission said it was also looking into placing export restrictions on $4.9 billion of steel scrap and chemical products to the United States. Scrap, a feedstock for the steel industry, is not covered by the U.S. metal tariffs, and there are concerns it could be sold outside the bloc.
The Commission also said it would launch a complaint at the World Trade Organization over U.S. tariffs, a procedure that begins with consultations between the parties.
Vice President JD Vance says that discussions between the U.S. and Europe were ongoing and that the U.S. was pressing the EU to lower its own tariffs and regulatory barriers to improve the trading relationship.
