EU to challenge US tariffs at WTO, threaten countermeasures

The European Commission has announced its intention to launch a dispute against the United States at the World Trade Organisation (WTO) over Washington’s "reciprocal" tariff policy, which includes duties on cars and car parts. 

In addition, the EU has initiated a public consultation on countermeasures targeting U.S. imports worth 95 billion euros ($107.4 billion), which could be enacted if no trade agreement is reached with the U.S., Caliber.Az reports, citing American media.

The proposed list of U.S. imports subject to potential retaliation includes hundreds of agricultural and industrial products, along with spirits such as bourbon and tequila. This is a particularly sensitive issue following U.S. President Donald Trump's March threat of a 200% tariff on EU alcohol imports. Although no specific retaliatory tariff rate has been announced, the EU's plan could impact U.S. firms, including major companies like Boeing, with aircraft and vehicle components on the list.

The EU's primary aim is to negotiate a deal to avoid President Trump's 20% reciprocal tariffs on all U.S. imports from the EU, as well as the 25% tariffs on steel, aluminium, and imported vehicles, which affect European automakers. The EU maintains that these U.S. tariffs violate fundamental WTO rules.

In a statement on May 8, EC President Ursula von der Leyen reaffirmed the EU’s commitment to finding negotiated solutions, stating, “We believe there are good deals to be made for the benefit of consumers and businesses on both sides of the Atlantic.”

The EU had previously suspended an initial set of retaliatory measures, agreed upon by member states in April in response to U.S. metals tariffs, to allow for ongoing negotiations. However, if a deal is not reached, the EU’s countermeasures will target around 21 billion euros ($24.1 billion) worth of U.S. goods, with a tariff rate of 25%.

By Khagan Isayev