The European Union is preparing to slap €100 billion (US$113 billion) in new tariffs on U.S. goods if ongoing trade talks with Washington collapse, according to insiders familiar with the matter.
The proposed retaliatory list will be presented to EU member states as early as Wednesday, with a one-month consultation period before finalisation. The list remains flexible and could be adjusted during that time.
What’s at Stake?
The EU’s draft plan comes on top of €21 billion in tariffs the bloc already imposed in response to Trump’s steel and aluminium duties. Talks began last month but have shown scant progress, raising the likelihood that most U.S. tariffs will stay in place. According to EU data, Trump’s trade investigations now cover €549 billion worth of EU exports.
EU Negotiation Moves: The European Commission, which leads the bloc’s trade negotiations, plans to send a paper to the U.S. this week, aiming to jump-start stalled talks.
Proposals include:
- Reducing trade and non-tariff barriers
- Boosting U.S.-EU investments
US Tariffs in Focus:
- 25% duties on steel, aluminum, cars, and parts
- Active probes on lumber, semiconductors, pharmaceuticals, critical minerals, and trucks
- Temporary 90-day delay on some EU measures after the U.S. eased reciprocal rates to 10% from 20% on most EU exports
The EU has left “all options on the table,” including new tariffs on services and export restrictions, signaling that the transatlantic trade conflict could intensify if talks break down.
A European Commission spokesperson declined to comment on the developing measures.
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