EU threatens countermeasures on $107 billion of US imports if trade talks fail

The European Commission has proposed retaliatory tariffs on up to €95 billion ($107.2 billion) worth of US goods if ongoing trade talks with Washington fail to resolve a long-running dispute over tariffs first imposed during Donald Trump’s previous presidency.

The proposal, unveiled on May 8, outlines potential EU duties on a broad range of American exports, including wine, fish, aircraft, automobiles and car parts, chemicals, electrical equipment, health products, and machinery, Caliber.Az reports, citing foreign media.

The move is intended as a direct response to existing US tariffs on EU steel, aluminium, and cars, as well as a broader 10% "reciprocal" levy that could rise to 20% after a temporary suspension expires on July 8.

The European Commission, which handles trade policy for the EU’s 27 member states, said it would launch a one-month consultation to gather feedback from member governments and businesses. A final decision on which countermeasures to adopt is expected after the consultation, with the actual volume of US goods targeted likely to be less than the proposed €95 billion.

The timing of the announcement coincides with expectations that former US President Donald Trump will unveil a new trade agreement between the United States and the United Kingdom, signalling a further shift in US trade priorities.

Currently, the EU faces US import tariffs of 25% on its steel, aluminium, and vehicles, alongside the 10% general reciprocal tariff that applies to nearly all other goods exported to the US. The Commission has made clear that it prefers a negotiated resolution but wants to be prepared to act in July if no agreement is reached.

In April, the EU approved a package of retaliatory tariffs—primarily at 25%—on $21 billion worth of US goods, including maize, wheat, motorcycles, and clothing. However, implementation was suspended after the Trump administration introduced a 90-day pause on new trade measures.

According to the European Commission, US tariffs currently in force affect €380 billion, or 70%, of EU exports to the United States. This figure could rise to 97% if Washington follows through on planned tariff expansions related to pharmaceuticals, semiconductors, critical minerals, and trucks.

US Vice President JD Vance said on May 7 that trade discussions with the EU were ongoing. He noted that the United States is urging Brussels to lower its tariffs and reduce regulatory barriers as part of efforts to improve transatlantic trade relations.

By Tamilla Hasanova