EU targets 100 billion euros of US goods with tariffs if talks fail
The proposed retaliatory measures will be shared with member states as early as May 7
[BRUSSELS] The European Union plans to hit about 100 billion euros (US$113 billion) in US goods with additional tariffs in the event ongoing trade talks fail to yield a satisfactory result for the bloc, according to people familiar with the matter.
The proposed retaliatory measures will be shared with member states as early as May 7 and consultations will last for a month before the list is finalised, said the people, who spoke on the condition of anonymity because the plans are private. The list could change in that time.
Separately, the European Commission, the bloc’s executive arm that handles trade matters, is expected to share a paper with the US this week to try to kick-start the negotiations, Bloomberg reported earlier. Proposals from the EU are expected to include lowering trade and non-tariff barriers and boosting investments in the US.
Negotiations between the EU and US, which began in earnest last month, have made scant progress and the expectation is that the bulk of the American tariffs will remain in place. The EU said on Tuesday (May 6) that US President Donald Trump’s ongoing trade investigations will boost the amount of the bloc’s goods facing tariffs to 549 billion euros.
A commission spokesperson declined to comment.
The new EU counter-measure list will come on top of the 21 billion euros of US goods already targeted by EU levies in response to Trump’s 25 per cent duty on steel and aluminium exports. The EU agreed earlier this month to delay for 90 days the implementation of those measures after the US lowered his so-called reciprocal rate on most EU exports to 10 per cent from 20 per cent while the negotiations are taking place.
Trump has also imposed a 25 per cent duty on cars as well as some car parts and has initiated investigations that could result in duties on the imports of lumber, pharmaceuticals, semiconductors, critical minerals and trucks.
The commission has said all options are on the table in response to Trump’s levies and future measures could target services and restrict exports, Bloomberg previously reported. BLOOMBERG
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