We re not the ones starting this : EU fires back at Donald Trump with 100B tariff threat

Get the Full StoryThe European Union intensified its trade conflict with the United States on Thursday by announcing a plan to introduce retaliatory tariffs on American imports worth nearly 100 billion euros. This strong countermove comes after President Trump placed tariffs on European goods, leading the EU to state that its actions are purely defensive. The proposed tariffs mark a major escalation, which may bring the EU into the trade war that seemed exclusive to the US and China. Focusing on a broad range of US products, including airplanes, cars, farm goods, and alcoholic drinks. The EU s proposed 100 billion euro package is a direct response to the Trump administration s trade protection policies, as reported by Euractiv. While the EU has already warned about tariffs on 21 billion euros worth of US goods, this new step significantly raises the pressure on the US, per Politico. Even with this large increase, the total value of targeted goods remains much smaller than the roughly 380 billion euros in EU goods already facing US tariffs, showing the EU s careful approach while still demonstrating its determination. The EU wants to bring tariffs to US The specific list of targeted goods includes around 8.5 billion euros in airplane exports, 7.2 billion euros in electrical equipment, and 6.4 billion euros in agricultural and food products. The car industry is also a major focus, with passenger vehicles and auto parts included. Alcoholic drinks, especially bourbon, are also on the list, a choice likely influenced by European wine and liquor producers who are worried about the impact of existing US tariffs on their sales. Another 4.4 billion euros in scrap metal and chemical products are also being considered for possible export restrictions. The EU s decision is not just about retaliatory tariffs; it is also about defending international trade rules. At the same time, the EU filed a formal complaint with the World Trade Organization WTO against the Trump administration s tariffs. Photo Illustration by Matt Cardy Getty Images This complaint specifically disputes the so-called reciprocal tariffs and the taxes placed on cars and car parts, arguing that these charges clearly break basic WTO rules. The EU hopes a WTO ruling will provide a legal basis for resolving the dispute. The EU s actions are likely to have a major effect on several US industries. The proposed tariffs on airplanes would directly hurt Boeing, possibly restarting a long-running argument over subsidies between the US and Europe. The car sector also faces big risks, with potential major disruptions in the export market. The EU s decision is not yet final. European businesses have a one-month consultation period to raise concerns and propose changes to the tariff list before the European Commission makes its final decision. This decision, expected in July, will likely depend on how talks between the EU and the US progress. EU officials have said they prefer a negotiated solution and that the tariffs might be avoided entirely if a zero-tariff deal is reached by July. However, they are ready for the possibility of ongoing trade tensions, stating that the Trump administration s 25 tariffs on European steel, aluminum, and cars will probably stay in place. There is also concern about the effect of the 10 universal tax and the chance that the 20 reciprocal tariff could return in early July if no agreement is made. EU exporters could eventually face tariffs on 97 of their sales to the US, worth 549 billion euros, if additional taxes on pharmaceuticals, semiconductors, and lumber are applied.

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