In a bold move to protect its economic interests, the European Union has proposed retaliatory tariffs worth up to €95 billion ($107 billion) on U.S. goods if ongoing trade talks with Washington fall through. The proposal, announced Thursday by the European Commission, is aimed at countering a series of tariffs introduced by President Donald Trump as part of his aggressive “reciprocal” trade policy.
The EU’s draft response targets a broad range of American products, including iconic goods like wine, bourbon, aircraft, vehicles and parts, health equipment, chemicals, electrical devices, and industrial machinery. The plan is currently open to public consultation until June 10, allowing EU governments, businesses, and citizens to provide feedback before a final decision is made.
President of the European Commission Ursula von der Leyen emphasized that Brussels still favors dialogue over conflict. “The EU remains fully committed to finding a negotiated solution with the United States,” she said. “However, we must prepare for every possible scenario.”
This announcement comes on the same day that former President Trump unveiled a new trade agreement with the United Kingdom—his first concrete step toward softening his protectionist trade approach. Meanwhile, the EU is still grappling with heavy U.S. tariffs: 25% duties on steel, aluminum, and cars, and 10% “reciprocal” tariffs on nearly all other goods—rates that could jump to 20% after a 90-day pause expires on July 8.
The EU’s proposed retaliation is part of a calculated strategy. While the full list covers €95 billion worth of U.S. exports, the final measures are expected to affect a smaller amount. This reflects the EU’s intention to apply pressure without escalating the conflict into a full-blown trade war.
Earlier in April, the EU had approved a separate round of retaliatory duties worth €21 billion targeting U.S. maize, wheat, motorcycles, and clothing—although these were temporarily suspended after Trump paused his tariff expansion. Now, with that grace period nearing its end, Europe is once again preparing its defenses.
Currently, about 70% of EU goods exported to the U.S.—worth €380 billion—are impacted by American tariffs. That figure could rise to 97% if additional U.S. investigations into European pharmaceuticals, semiconductors, and critical minerals result in new duties. Interestingly, the EU has chosen not to target pharmaceutical products or semiconductors in its response, possibly to avoid disrupting vital sectors.
The Commission is also exploring export restrictions on €4.4 billion worth of scrap metal and chemicals—materials not yet taxed by the U.S. but vital to the American steel industry. Additionally, Brussels plans to lodge a formal complaint at the World Trade Organization (WTO), triggering a legal dispute that could last for months.
Meanwhile, key stakeholders are weighing in. German carmakers like BMW and Mercedes-Benz—both of which produce hundreds of thousands of vehicles in the U.S. annually—have called for de-escalation and mutual cooperation. Spirits industry group spiritsEUROPE also urged negotiators to preserve the longstanding tariff-free trade on alcohol, established back in 1997.
Despite the imbalance in trade (the EU exported €532 billion to the U.S. in 2024 but imported only €335 billion), European officials insist they’re aiming for a “proportionate” response that defends their interests without provoking greater damage.
With the July deadline looming, all eyes are on Brussels and Washington. Will diplomacy prevail, or are we heading for another round of tariff warfare?
