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Brussels is threatening tariffs on US exports of 95 billion euros, including car and vehicle parts, if talks with Washington do not end the trade dispute.
The EU’s proposal for retaliation will likely come into effect in July. If the European Commission has made insufficient progress to persuade the US to raise tariffs on EU exports of 38 billion euros.
The committee also said that if the US does not reduce tariffs, it will launch a dispute at the World Trade Organization.
On April 2, US President Donald Trump imposed 20% so-called “mutual” tariffs on almost every export from the EU as part of his global trade measures. However, he cut this to 10% for 90 days on April 9th, allowing time for consultation.
The 25% tariff on EU steel, aluminum and cars remains intact.
A senior official from the EU trade policy committee warned Thursday that he expects the tariff dispute to “last over time.”
“We are not pursuing a dollar-euro approach for the dollar,” but if US tariffs continue well beyond the 90-day ceasefire for talks, officials said, they would want “sustainable” measures.
Certain groceries such as Boeing aircraft, wine, fish, beef and olive oil are also included in a new list created by Brussels of items that could be subject to retaliation tariffs.
Aircraft and parts account for 10.5 billion euros per year imports from the US to the EU, 2 billion euros in vehicles and 1.03 billion euros in vehicle parts. The levels of possible tariffs on these imports have not been determined yet.
The committee will also limit the export of scrap metal that US Mills uses to create new raw steel, as previously reported by the Financial Times.
“We’re using 90 days to negotiate, but we’re also preparing for other scenarios,” the official said.
The list must first be approved by the majority of member countries and can require that the product be removed.
The EU had already announced that it would respond to taxable iron and aluminum tariffs on US goods worth 21 billion euros, including Harley-Davidson motorcycles, chicken and clothing. However, Brock halted retaliation measures during Trump’s 90-day hiatus.
The EU government has been lobbying hard to exempt certain products from retaliatory tariffs.
France, Italy and Ireland have managed to remove bourbon and wine from their initial list due to the threat that Trump will deal with his alcohol exports with 200% tariffs.
The latest proposal could also be revised, committee officials proposed Thursday. “List… In the end, it’s going to be a little smaller than 95 million euros,” the official said.
Additional Reports by Barbara Mones of Brussels
