EU Prepares Countermeasures if US Imposes Key Tariffs

The European Union (EU) is planning to impose countermeasures on American imports, including aircraft from Boeing, should President Donald Trump proceed with imposing key tariffs on bloc products, as many anticipate. EU officials expect the US to maintain certain tariffs even after trade negotiations conclude. So far, the European Commission, which handles trade matters for the EU, has not stated whether this would trigger countermeasures from the bloc. ‘We will need to take countermeasures and restore balances in certain key sectors if the US insists on an asymmetrical agreement,’ said the head of the EU’s industry, Thierry Breton, to Bloomberg News, including if ‘the result of negotiations is a 10% tariff remains.’ The EU is rushing to reach an agreement with Washington before tariffs on almost all its exports to the US rise to 50% on July 9. Trump has criticized the EU, claiming it was created to ‘hit’ the US, citing its trade surplus and alleged barriers to American trade. The EU estimates that American tariffs now cover 380 billion euros ($439 billion), about 70% of its exports to the US. Negotiations have accelerated, and the Commission is doing everything to reach a mutually beneficial solution, according to an EU official speaking anonymously. Any decision on countermeasures must be coordinated and agreed upon by member states. Among American demands are measures concerning fish export quotas, potentially incompatible with World Trade Organization rules, non-reciprocal tariff moves, and a range of security requirements described as unreasonable by bloc officials. Many in the EU expect most US tariffs to remain even if an agreement is reached, including a basic 10% tariff. The UK signed a deal with the US this month, leaving a 10% tariff on nearly all British exports. ‘I understand the US is working largely with 10% as a basic limit,’ said the head of the EU’s trade department, Valdis Dombrovskis, in Berlin on Monday. ‘We are also working on balancing measures to protect European businesses and workers if we don’t reach a fair, negotiated solution,’ he added. One sector exposed to a trade war could be civil aviation. Breton stated that Airbus SE cannot face ‘unfair competition’ from Boeing due to an additional 10% tariff. ‘If we don’t restore balance, we leave certain key sectors unprotected, so there is an economic interest in acting accordingly,’ he said. Even if talks progress well, many Europeans view the best scenario as a preliminary agreement allowing negotiations to continue beyond the July 9 deadline, extending the current truce. The EU has already approved tariffs on $21 billion worth of American goods that can be quickly applied in response to Trump’s levies on aluminum and steel exports. These tariffs target politically sensitive American states and include products like soybeans from Louisiana, home to House Speaker Mike Johnson, as well as agricultural products, poultry, and motorcycles. The bloc is also preparing an additional list of tariffs on $95 billion worth of American goods in response to reciprocal duties and Trump’s auto industry tariffs. This list may change as member states and industries seek modifications to protect their sectors. The US has already imposed tariffs on European cars, steel, and aluminum. Trump has also announced plans to extend tariffs to other sectors, including pharmaceuticals, semiconductors, and commercial aircraft. Trump told reporters this month upon returning from the G7 summit in Canada that he doesn’t feel the EU offers ‘a fair deal yet.’ ‘Either they make a good deal or they pay what we say they have to pay,’ he said.