EU Prepares Retaliation Against the US: Targeting $845 Billion Worth of American Goods

Tensions between the European Union and the United States are heating up once again. Brussels is drafting a list of American goods that could face retaliatory tariffs if ongoing trade talks with Washington collapse. The value of the potentially targeted US exports stands at around $845 billion, equivalent to approximately €74 billion. According to diplomatic sources, the European Commission has not yet shared the list with EU member states, but preparations are well underway. Goods in the crosshairs include American cars, alcoholic beverages like bourbon, and even tech and industrial equipment.

Trump Raises the Stakes: 30% Tariff on the EU from August Trade tensions have been rising since April, when Donald Trump first announced a 20% tariff on European goods. He later reduced it to 10%, but now he’s proposing a new wave: a 30% tariff on all EU imports starting August 1. His stated goal is to narrow the $235.6 billion trade deficit with the EU. The markets reacted swiftly. French and German bond yields plummeted to levels not seen since the eurozone debt crisis of 2009–2011. Investors are growing increasingly concerned about the future of the $1.7 trillion transatlantic partnership.

Commissioner Šefčovič: “Trade as We Know It Could Collapse” European Trade Commissioner Maroš Šefčovič warned that the proposed tariffs would make it nearly impossible to continue transatlantic trade under current conditions. While the EU had managed to negotiate a temporary cap of 10% and carve-outs for key exports like cars, Trump’s latest move has thrown talks back into chaos. Meanwhile, the White House has threatened similar tariffs against at least 20 other trade partners, including Canada, Japan, South Korea, Indonesia, and Brazil. Trump also warned of a 50% tariff on all copper imports, which would ripple through global supply chains.

EU Plans Strong Response: Aircraft and Tech on the Line The European Union is not planning to sit back. If negotiations fail before August 1, Brussels intends to strike back by targeting US aircraft, aircraft components, and tech products, with a total value of around €11 billion ($13 billion). Other categories on the draft list include:

🔹 Passenger and commercial vehicles

🔹 Machinery and equipment

🔹 Electrical devices

🔹 Chemical products

🔹 Fruits and vegetables

🔹 Alcohol, especially bourbon and rum A source familiar with the matter also indicated that retaliatory measures could extend to products from major American tech companies, potentially triggering broader consequences beyond standard trade. The full tariff list must still be approved by the European Commission’s trade committee, but the message is clear: if the US hikes tariffs, the EU will respond in kind.

Šefčovič: We’ll Do Everything to Avoid Disaster – But We Must Defend Europe European Commission President Ursula von der Leyen has attempted to deescalate the situation by proposing a tariff-free deal for industrial goods, including cars. However, Trump dismissed this offer as insufficient to address the trade imbalance. Šefčovič, meanwhile, is preparing for a worst-case scenario. Still, he emphasized his commitment to a negotiated solution: “We must protect the European economy. But if talks break down, we’ll have to act – firmly, yet not impulsively.”

#TRUMP , #Tariffs , #TradingCommunity , #usa , #Eu

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