The European Commission has initiated a public consultation regarding potential countermeasures on US imports, valued at €95 billion, if ongoing negotiations between the EU and the US do not yield a satisfactory resolution to current tariff disputes. This list encompasses a variety of industrial and agricultural products. Additionally, the Commission is considering restrictions on certain EU exports to the US, specifically steel scrap and chemical products worth €4.4 billion.
The consultation aims to address both universal tariffs imposed by the US and those specifically targeting cars and car parts. The EU seeks a balanced solution through negotiations, which include a 90-day partial suspension of tariffs announced by the US. While these discussions continue at both political and technical levels, the EU is preparing for possible countermeasures should talks fail.
Simultaneously, the EU plans to initiate a WTO dispute against what it describes as “reciprocal” tariffs by formally requesting consultations with the US. The EU argues that these tariffs violate fundamental WTO rules and stresses that internationally agreed regulations must be respected.
Commission President Ursula von der Leyen commented: “Tariffs are already having a negative impact on 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.”
As part of its strategy under the Enforcement Regulation, anyone affected by potential rebalancing measures is invited to submit their views over four weeks until June 10th. Based on this feedback, the Commission will finalize its proposal for countermeasures and consult Member States through comitology procedures.
In parallel with these actions, once formal WTO consultations are requested, both parties will have up to two months to find an agreement before potentially escalating to panel assessment if talks do not succeed.
The background of this situation includes President Trump’s announcement on April 2nd regarding “reciprocal” tariffs set at 20% for EU goods alongside a 25% tariff on vehicle imports. In response to these developments, President von der Leyen indicated preparation for possible EU countermeasures should negotiations falter.
Currently, new US tariffs affect €379 billion or 70% of EU exports since recent administrative changes in Washington D.C., contributing to increased business costs while impacting economic growth negatively across sectors.
