Last Thursday, May 8, the European Commission announced the possible response to U.S. import taxes and tariffs. The EU Commission proposed countermeasures on up to 95 billion euros ($107.2 billion) of U.S. imports under the condition that negotiations with Washington fail to remove the tariffs applied by President Trump.
Wine, bourbon and other spirits, fish, aircraft, car and car parts, chemicals, electrical equipment, health products and machinery, are among the products that would be hit by EU action. The EU has not included pharmaceutical products or semiconductors on its list. Also, restrictions on 4.4 billion euros of steel scrap and chemical products are under study of the Commission.
Actually, Commission President Ursula von der Leyen declared that "The EU remains fully committed to finding negotiated outcomes with the U.S.". She added: "At the same time, we continue preparing for all possibilities."
In April, the EU approved duties mostly of 25% on U.S. imports amounting to 21 billion euros, including maize, wheat, motorcycles and clothing. These, a response to U.S. metals tariffs, were suspended before entering into force, after Trump announced his 90-day pause.
The EU faces 25% U.S. import tariffs on its steel, aluminium and cars and so-called "reciprocal" tariffs of 10% for almost all other goods, a levy that could rise to 20% after Trump's 90-day pause expires on July 8.
On June 10 EU Commission is expected to start a public consultation for EU members and businesses on the reaction to take. After that consultation, final decision on its counter-tariffs will be taken. Ultimately, it could hit a minor volume of U.S. imports.
Even if it has said it would prefer a negotiated solution, the Commission wants to have a retaliatory response ready for July in case no solution is found. The Commission would file a complaint at the World Trade Organization over U.S. tariffs.
U.S. tariffs now cover 380 billion euros or 70% of EU goods trade to the U.S. and that could rise to 97% after further U.S. investigations into pharmaceuticals, semiconductors, critical minerals and trucks.