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Trade war: EU warns of tariffs on $113bn in US goods if…

The European Union is preparing to impose tariffs on approximately 100 billion euros (US$113.26 billion) worth of US goods if ongoing trade negotiations fail.

According to people familiar with the matter, the proposed retaliatory measures will be shared with EU member states as early as May 7.

A one-month consultation period will follow before the final list is determined.

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“The list could change in that time,” the sources said, speaking on the condition of anonymity due to the private nature of the discussions.

The European Commission, which handles trade matters for the bloc, is also expected to present a paper to the US this week in an attempt to reignite the stalled negotiations, Bloomberg noted.

EU proposals are expected to include “lowering trade and non-tariff barriers and boosting investments in the US,” the report added.

Talks between the EU and the US, which gained momentum last month, have shown little progress so far. Officials anticipate that “the bulk of the American tariffs will remain in place.”

On Tuesday (May 6), the EU stated that President Donald Trump’s ongoing trade investigations could bring the total value of EU goods subject to US tariffs up to 549 billion euros.

A spokesperson for the European Commission declined to comment.

The new list of EU countermeasures would build on the 21 billion euros in US goods already targeted by EU tariffs. These were imposed in response to Trump’s 25 percent duty on steel and aluminum exports.

Earlier this month, the EU agreed to delay implementation of those measures for 90 days. This followed the US reducing its so-called reciprocal tariff rate on most EU exports to 10 percent from 20 percent during the negotiations.

Trump has also imposed a 25 percent duty on cars and certain car parts. Additionally, he has launched investigations that could lead to new tariffs on imports of lumber, pharmaceuticals, semiconductors, critical minerals, and trucks.

The European Commission has previously stated that “all options are on the table” in response to US trade measures. According to Bloomberg, future EU actions could include targeting services and restricting exports.

(Bloomberg)

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