The European Commission has started a public consultation on US imports that might face EU countermeasures if ongoing negotiations with the US do not remove the tariffs. The consultation includes US imports worth €95 billion, covering various industrial and agricultural products. It also considers potential restrictions on EU exports of steel scrap and chemicals to the US, valued at €4.4 billion. This aims to address both US universal tariffs and those on cars and car parts.
Since the US imposed harmful tariffs, the EU has sought a balanced solution through negotiations. These talks are ongoing at both political and technical levels. The EU is preparing countermeasures to protect its consumers and industry, in case negotiations fail. The consultation is a necessary step but doesnt automatically lead to countermeasures.
The EU will also start a WTO dispute against US tariffs, which violate WTO rules. The goal is to reaffirm the importance of internationally agreed rules. The EU will monitor the potential diversion of global exports to the EU market due to US tariffs. It will also pursue negotiations with other partners to diversify export outlets and strengthen the EUs Single Market.
Commission President Ursula von der Leyen said, Tariffs negatively impact global economies. The EU is committed to negotiated outcomes with the US, aiming for beneficial deals for both consumers and businesses. We continue preparing for all outcomes, and todays consultation will guide this work.
Next steps
The Commission will act under the EUs Enforcement Regulation, considering US measures as safeguards. Affected parties are invited to submit views during four weeks, until 10 June. Based on input, the Commission will finalize a countermeasure proposal, consulting Member States through the comitology process. If US negotiations fail, the Commission aims to have legal countermeasures ready.
Parallelly, once the EU requests WTO consultations, both parties have two months to agree. If consultations fail, the EU can request a panel to assess the cases merits.
Background
On 2 April, President Trump announced 20% tariffs on EU goods and 25% on vehicles and car parts, besides existing tariffs on steel and aluminium. In response, President von der Leyen prepared EU countermeasures if tariff negotiations fail. On 9 April, the US paused the 20% tariff for 90 days, leaving a 10% tariff. The EU paused its countermeasures, allowing negotiation space.
Currently, €379 billion of EU exports to the US face new tariffs, affecting 70% of EU exports to the US, raising business costs, stifling growth, and increasing economic uncertainty.
For More Information
List of products which could be subject to possible import duties
List of products which could be subject to possible export restrictions