Europe's $106 Billion Response to U.S. Tariffs

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The European Union (EU) has published a list of U.S. industrial and agricultural imports worth 95 billion euro (US$106 billion) that will potentially face tariffs in response to proposed U.S. tariffs on key European exports.

The European Commission (EC) has confirmed that it has started a public consultation on a comprehensive, 218-page list of more than 4,800 U.S. imports that could become subject to EU countermeasures, if ongoing EU-U.S. negotiations do not result in a "mutually beneficial outcome and the removal of the U.S. tariffs." In addition, it is considering restrictions on certain EU exports of steel scrap and chemical products to the U.S. worth 4.4 billion euro (US$4.9 billion). This consultation is designed to address "both the U.S. universal tariffs and the tariffs on cars and car parts." U.S. President Donald Trump announced the introduction of so-called "reciprocal" tariffs, which for EU goods were set at 20%, which came on top of a tariff of 25% on all imports of vehicles and car parts. Those tariffs are the latest in a growing trade dispute which began with his 25% tariff on imports of steel, aluminium, and derivative products in February. For additional information, see January, 2025, article--Europe Promises Swift Action Against U.S. Steel Tariffs. In 2024, the EU exported 531.6 billion euro (US$589 billion) in goods to the U.S and imported 333.4 billion euro (US$370 billion), resulting in a 198.2 billion euro (US$220 billion) trade surplus.

Commission President Ursula von der Leyen said: "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".

According to the Commission, currently 379 billion euro (US$422 billion) of EU exports to the U.S. (or 70% of EU exports to the U.S.) are subject to new tariffs (including tariffs put on pause) since the new U.S. administration took office. It maintained that the tariffs are raising costs for business, stifling growth, fuelling inflation and heightening economic uncertainty. Key items on the list cover cars and aircraft, spare parts, medical devices, plastics, chemicals, electronics, food and beverages, and petroleum products. According to Reuters, using Eurostat data, cars, aircraft and spare parts account for 22.5 billion (US$24.9 billion) of the proposed tariffs, with plastics and chemicals accounting for almost 13 billion euro (US$14.4 billion).

Maroš Šefčovič, commissioner for Trade and Economic Security at the Commission, said: "The Commission remains fully engaged with the U.S. at both the political and technical levels, working tirelessly toward a common-sense solution that serves both sides. But we will not accept an outcome at any price. That is why we are actively consulting with our Member States, industry, and stakeholders to prepare for all eventualities. In parallel, we are launching a case at the World Trade Organization (WTO) to challenge U.S. tariffs that we consider unjustified and in clear breach of global trade rules."

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