European Commission Unveils Countermeasure Strategy Against U.S. Tariffs
Brussels outlines €95 billion response package and plans for WTO action.
Brussels – The European Commission has formally announced its strategy in response to existing and potential U.S. tariffs on EU imports, following the 90-day suspension initiated by former U.S. President Donald Trump.
Shifting from a previous dollar-for-dollar retaliation model, the new approach emphasizes a more measured and calculated response to avoid detrimental impacts on the European economy.
The Commission reiterated its preference for a "mutually beneficial and balanced" resolution with the United States, with the deadline for addressing reciprocal 25% tariffs on EU imports fast approaching on July 10. Currently, EU exports to the U.S. face substantial tariffs, including a 25% duty on steel and aluminium and a 10% tariff on various goods, affecting approximately 70% of EU exports, which total €379 billion annually.
In an effort to communicate its countermeasure intentions, the European Commission has released a list of U.S. imports subject to new tariffs, now open for public consultation until June 10. This list encompasses a wide range of industrial and agricultural products, with an estimated value of €95 billion based on 2024 import volumes, representing around a quarter of EU exports to the U.S. that are already impacted by new tariffs.
The Commission aims for these countermeasures to be sustainable and impactful in the long term.
Among the targeted U.S. goods are American wines and spirits valued at €1.3 billion, agricultural products at €6.4 billion, fish products worth €500 million, aircraft worth approximately €10.5 billion, and automotive components totaling €12.3 billion.
Agricultural and industrial machinery are also on the list at €12 billion, along with health industry-related products at €10 billion and electrical equipment valued at €7.2 billion.
Notably, pharmaceuticals, critical materials, and other sensitive items have been excluded from this list, along with certain products already on the suspended tariff list, which could affect an additional €21 billion in imports.
As part of the response strategy, the Commission is also evaluating potential restrictions on some EU exports to the U.S., specifically steel scrap and chemicals, with a value of €4.4 billion.
Although no immediate measures are being discussed for the services sector, this remains a viable option, according to senior officials.
Additionally, the Commission has the ability to impose heavier taxation on U.S. tech companies operating in Europe as a potential tool for leverage.
In parallel with these countermeasure plans, the European Commission intends to file a dispute with the World Trade Organization (WTO), contending that the U.S. tariffs violate established WTO regulations.
The Commission indicated that this legal action could be suspended should fruitful negotiations with Washington emerge.
Furthermore, the Commission is closely monitoring potential shifts in global trade patterns that may arise from U.S. tariffs on other nations, indicating a proactive stance in securing new trade avenues and supply sources.
Following the public consultation period, the Commission plans to finalize its countermeasure proposal and present it to EU member states for a decision under the "comitology" procedure, which necessitates a qualified majority vote for approval.
EU Council officials have expressed general confidence in the Commission’s strategy and the overall direction of the proposed measures.
Shifting from a previous dollar-for-dollar retaliation model, the new approach emphasizes a more measured and calculated response to avoid detrimental impacts on the European economy.
The Commission reiterated its preference for a "mutually beneficial and balanced" resolution with the United States, with the deadline for addressing reciprocal 25% tariffs on EU imports fast approaching on July 10. Currently, EU exports to the U.S. face substantial tariffs, including a 25% duty on steel and aluminium and a 10% tariff on various goods, affecting approximately 70% of EU exports, which total €379 billion annually.
In an effort to communicate its countermeasure intentions, the European Commission has released a list of U.S. imports subject to new tariffs, now open for public consultation until June 10. This list encompasses a wide range of industrial and agricultural products, with an estimated value of €95 billion based on 2024 import volumes, representing around a quarter of EU exports to the U.S. that are already impacted by new tariffs.
The Commission aims for these countermeasures to be sustainable and impactful in the long term.
Among the targeted U.S. goods are American wines and spirits valued at €1.3 billion, agricultural products at €6.4 billion, fish products worth €500 million, aircraft worth approximately €10.5 billion, and automotive components totaling €12.3 billion.
Agricultural and industrial machinery are also on the list at €12 billion, along with health industry-related products at €10 billion and electrical equipment valued at €7.2 billion.
Notably, pharmaceuticals, critical materials, and other sensitive items have been excluded from this list, along with certain products already on the suspended tariff list, which could affect an additional €21 billion in imports.
As part of the response strategy, the Commission is also evaluating potential restrictions on some EU exports to the U.S., specifically steel scrap and chemicals, with a value of €4.4 billion.
Although no immediate measures are being discussed for the services sector, this remains a viable option, according to senior officials.
Additionally, the Commission has the ability to impose heavier taxation on U.S. tech companies operating in Europe as a potential tool for leverage.
In parallel with these countermeasure plans, the European Commission intends to file a dispute with the World Trade Organization (WTO), contending that the U.S. tariffs violate established WTO regulations.
The Commission indicated that this legal action could be suspended should fruitful negotiations with Washington emerge.
Furthermore, the Commission is closely monitoring potential shifts in global trade patterns that may arise from U.S. tariffs on other nations, indicating a proactive stance in securing new trade avenues and supply sources.
Following the public consultation period, the Commission plans to finalize its countermeasure proposal and present it to EU member states for a decision under the "comitology" procedure, which necessitates a qualified majority vote for approval.
EU Council officials have expressed general confidence in the Commission’s strategy and the overall direction of the proposed measures.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
