The European Commission is drawing up more countermeasures targeting just under €100 billion worth of US goods in response to Donald Trump’s sweeping tariffs on EU exports, according to three people familiar with the matter. The new package is designed to give the EU more leverage amid a tense transatlantic stand off, rather than to be immediately deployed. Both sides are currently locked in talks to avoid an escalating trade war after Trump imposed tariffs on the EU and other trading partners.
Last week, top trade official Sabine Weyand and Björn Seibert, the right hand of Commission President Ursula von der Leyen, briefed EU countries’ ambassadors on plans to offer the US more EU investment in various sectors, while also threatening some American sectors with duties worth just under €100 billion. Bloomberg first reported the €100 billion figure. National diplomats are hoping to hear more details from the Commission as soon as Wednesday, including on what sweeteners the EU could offer the White House, from buying more American gas, soybeans and weapons to a potential alliance to face down China.
The €100 billion package is only designed to be used if ongoing efforts to convince Trump not to reimpose a 20% US levy on EU goods fail, one of the people familiar with the matter said. Weyand is in Washington this week holding technical discussions. Trump has suspended the 20% tariffs until July.
Trump has already introduced tariffs on EU steel, aluminium, and cars as well as a blanket 10% levy on all goods – all of which remain in effect. The EU has already openly threatened to whack the US economy with tariffs worth €21 billion, which came in response to the US president’s 25% duties on steel and aluminium. Trump has also repeatedly threatened to impose further tariffs on pharmaceuticals, lumber, semiconductors, and foreign-made films, all of which could further impact the EU.
EU Trade Commissioner Maroš Šefčovič told MEPs on Tuesday that Trump’s measures could impact 97% of EU exports to the US, affecting €549 billion worth of goods. “The situation as such is not acceptable, and we cannot afford to stay idle,” he said. The European Commission declined to comment.
(om)
