EU Weighs €95 Billion in Tariffs on U.S. Goods if Trade Talks Fail

The European Commission has launched a public consultation to gather opinions on possible new tariffs on U.S. products, as trade talks between the EU and the U.S. continue without a clear resolution.

The EU is considering tariffs on €95 billion worth of U.S. goods, including a wide range of industrial and farm products. It is also looking at limiting some EU exports of steel scrap and chemicals to the U.S., worth €4.4 billion. These measures would only be used if ongoing negotiations fail to remove U.S. tariffs.

Commission President Ursula von der Leyen stated: “Tariffs are already having a negative impact on the global economies. The EU remains fully committed to finding negotiated outcomes with the US. We believe there are good deals to be made for the benefit of consumers and businesses on both sides of the Atlantic. At the same time, we continue preparing for all possibilities, and the consultation launched today will help guide us in this necessary work.”

The U.S. introduced a 25% tariff on cars and car parts, and a 20% blanket tariff on EU goods in early April, along with earlier duties on steel, aluminum, and related products. While the U.S. paused the 20% tariff for 90 days, a 10% tariff remains in place. In response, the EU delayed its own planned tariffs on U.S. goods to allow for further talks.

So far, 70% of EU exports to the U.S.—worth about €379 billion—are affected by the new U.S. tariffs. The EU says these measures are hurting businesses, raising prices, and creating uncertainty in the economy.

The consultation, open until June 10, allows businesses and individuals to give feedback on how the U.S. tariffs have affected them and what the EU’s response should be. After reviewing the input, the Commission will decide whether to move forward with countermeasures, and it will consult with EU countries before finalizing any action.

At the same time, the EU will file a formal complaint with the World Trade Organization (WTO), arguing that the U.S. tariffs break international trade rules. If talks at the WTO do not succeed, the EU can request a panel to review the case.

The Commission also said it is watching for any shift in global trade caused by U.S. tariffs on other countries, and is working to find new trade partners and strengthen the EU’s internal market.

Source: tovima.com