€100B counterstrike

EU takes aim at US planes, autos in €100B counterstrike against Trump tariffs

Brussels moves ahead with its retaliation, conceding its transatlantic ties with Washington may be beyond repair.

By Camille Gijs, Koen Verhelst and Giovanna Coi

The European Union upped the pressure Thursday in its trade dispute with U.S. President Donald Trump by proposing potential tariffs on nearly €100 billion of imports — including big-ticket items like aircraft.

The lists include includes passenger cars, medical devices, chemicals and plastics, and a slew of agricultural products. Also back on the list are bourbon and other spirits, after wine-producing nations France and Italy pressured the Commission to remove them fearing Trump’s wrath. 

These are part of a 200-page catalog of more than 4,800 goods compiled by EU trade officials in response to Trump’s imposition last month of “reciprocal” tariffs as well as tariffs on EU cars. EU imports of these items exceeded €109 billion in 2024 according to Eurostat — aircraft are the biggest at more than €13 billion followed by autos at €7 billion.

The EU is also considering restricting exports of scrap steel and chemical products worth €4.4 billion. 

And, in a parallel measure, Brussels would launch a dispute at the World Trade Organization over Trump’s imposition of so-called reciprocal tariffs, as well as tariffs on cars and car parts. It is not clear yet when Brussels will officially start the case. 

The real objective remains “negotiated outcomes with the US,” European Commission President Ursula von der Leyen said in a statement. “At the same time, we continue preparing for all possibilities, and the consultation launched today will help guide us in this necessary work”.

No way back

The European Commission is moving ahead with the new lists because it has realized there won’t be a return to the status quo in its relations with Washington. 

Trump hit Europe on April 2 with 20 percent “reciprocal” tariffs on most goods, before dialing them back a week later to the 10 percent he had imposed on most countries, as stock and bond markets panicked over the hit to U.S. growth and prices they would cause.  

It however expects the Trump administration to have more flexibility on lowering the 10 percent U.S. baseline tariff, while the levies on cars, steel and aluminum are likely to stay as it pursues its “reindustrialization strategy goal,” a senior European Commission official said. 

“If we don’t get down from 10 percent, there’s no negotiation, no deal,” they added. 

The lineup is subject to change, as businesses and EU countries will have until June 10 to provide feedback and advocate for sensitive goods to be removed from the list to avoid being caught in Trump’s reprisals. 

This happened when the Commission in April consulted with EU capitals for its retaliation against Trump’s earlier steel and aluminum tariffs, with bourbon whiskey being removed at the request of France, Italy and Ireland. In the end, these measures were announced, but not implemented, as Trump suspended the reciprocal tariffs.

The threatened EU tariffs on aircraft would deal a heavy blow against Boeing, the troubled U.S. plane maker, and could reignite a long-running transatlantic subsidy dispute that was laid to rest after Trump’s first term. 

“Boeing is very welcome to reply,” added the senior official, speaking on condition of anonymity.

The total value of the listed products is much lower than the €379 billion of EU exports that is affected by U.S. tariffs. A second senior Commission official said Brussels had shown some restraint, “to not shoot ourselves in the foot. We want to be prudent,” to avoid a spiralling tit-for-tat dynamic that would ultimately “hurt our industry.”

The list adds to the bloc’s existing retaliation tactics, after several high-level meetings between Brussels and Washington failed to ease soaring trade tensions. In addition to its 10 percent charge on imports of most EU goods, Washington collects 25 percent levies on cars, steel and aluminum. 

The Trump administration is also investigating sectors like pharmaceuticals, trucks, lumber and semiconductors. The higher “reciprocal” tariff of 20 percent would kick back in from early July if no transatlantic deal is reached.