EU Considers Tariffs on U.S. Goods Amid Trade Tensions

BRUSSELS - The European Commission has identified a range of U.S. products, totaling 72 billion euros (approximately $84.1 billion), for potential tariffs, which include items such as Boeing aircraft, bourbon whiskey, and automobiles. This move comes in response to ongoing trade discussions with the United States, which have reached a critical juncture.

U.S. President Donald Trump has threatened to impose a 30% tariff on imports from the European Union starting August 1, a measure that European officials have described as unacceptable and detrimental to trade relations between these two major market players.

The tariff proposal, which has been communicated to EU member states, is a reaction to U.S. duties on cars and car parts, as well as a 10% baseline tariff that has stirred concerns across the Atlantic. The list of targeted goods extends beyond aircraft and spirits, encompassing chemicals, medical devices, precision equipment, and various agricultural products, including fruits, vegetables, wine, and spirits, which collectively amount to 6.35 billion euros.

In a recent meeting in Brussels, EU officials expressed a strong commitment to protect European businesses and prepare countermeasures should negotiations with the U.S. fail to yield satisfactory results. EU trade chief Maros Sefcovic indicated that the resolve among member states is unprecedented, emphasizing the importance of negotiation while simultaneously preparing for potential retaliatory actions.

French Foreign Minister Jean-Noel Barrot criticized Trump's tariff threats as tantamount to blackmail, asserting that while the priority remains to reach a trade agreement, it should not come at the expense of EU autonomy.

Trump has cautioned that the U.S. would respond to any new European tariffs by adjusting the existing 30% rate, further complicating the trade landscape. The European Commission has yet to finalize the specific tariff rates for the products under consideration, and any implementation of tariffs will require approval from EU member states.

Concerns have been raised within the European drinks industry, which heavily relies on the U.S. market, prompting calls to exclude bourbon and other alcoholic beverages from the potential tariff list due to fears of U.S. retaliation. Countries such as France, Spain, and Italy have voiced apprehensions regarding the economic impact of such tariffs.

In April, the EU approved a different set of tariffs on 21 billion euros worth of U.S. goods, which was suspended to facilitate negotiations. This suspension is currently extended until August 6, allowing more time for discussions to take place.

European stocks experienced a slight uptick on Tuesday, particularly in the automotive sector, following Trump's indication of openness to dialogue with the EU and other trade partners. The European Commission had initially proposed a broader package of countermeasures in May, targeting approximately 95 billion euros worth of U.S. goods. However, this list has since been reduced while still retaining many significant items.