EU Announces €95bn Countermeasure Plan to US Tariffs

The European Commission has revealed a new plan that could see countermeasures worth up to €95bn imposed on US imports. 

This move comes as negotiations with the Trump administration continue, with the European Union preparing an alternative response should any progress be made towards easing tariffs on European goods.

The Commission has formally launched a public consultation on a list of US imports that may eventually face EU measures. This covers industrial and agricultural products totalling approximately €95bn. 

The European Commission is also considering restrictions on certain EU exports, specifically steel scrap and chemical products, to the United States, valued at around €4.4bn. This inquiry will assess the impact of both the universal US tariffs and those that have been applied specifically to cars and car parts.

Commission President Ursula von der Leyen commented on the impact of these tariffs, saying:

“Tariffs are already having a negative impact on the global economies. The EU remains fully committed to finding negotiated outcomes with the US. At the same time, we continue preparing for all possibilities, and the consultation launched today will help guide us in this necessary work”.

Negotiations between the EU and the US are active on both political and technical levels, within the framework of the 90-day partial suspension of tariffs recently announced by the US. 

The Commission is also planning to lodge a request for consultations with the World Trade Organisation. The EU contends that these so-called reciprocal tariffs, including those on cars and car parts, flagrantly breach fundamental WTO rules. Its aim is to reaffirm that internationally agreed rules must be upheld and cannot be ignored unilaterally.

The Commission is engaging with other trading partners to secure alternative export markets and diversify its supply sources. The consultation process will remain open until 10th June, after which proposals for countermeasures will be finalised and discussed with Member States. 

Should negotiations with the United States prove unsatisfactory, the Commission intends to make legal measures available for immediate use.

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