EU Proposes New US Product Tariffs Amid Ongoing Negotiations

The European Commission has released a comprehensive list of US products that could face counter-tariffs if negotiations regarding the lifting of existing tariffs fail. This extensive list spans 218 pages and encompasses US products valued at €95 billion.

Contents of the Proposed Tariff List

The proposed list includes a variety of agricultural and industrial products, notably grains, soy-related products, meats, vegetables, spirits, and motorcycle and aircraft parts. Furthermore, the Commission is also considering restrictions on EU exports of steel scrap and certain chemical products, which would amount to about €4.4 billion.

Exclusions for Sensitive Products

A noteworthy point is that the list does not include pharmaceutical items or products deemed difficult to source from alternative suppliers. A source from the committee highlighted the importance of this exclusion, stating, “We don’t want to shoot ourselves in the foot.” Stakeholders, including producers, are welcome to submit objections to this list until June 10.

Revised Retaliation Strategy

This newly proposed list significantly differs from the one released last month as part of the EU’s initial retaliatory measures. The EU chose to pause these countermeasures for a period of 90 days, following a similar suspension by US President Donald Trump concerning an overall import tariff of 20%.

“We are convinced that there are good deals to be had.”

— Ursula von der Leyen, European Commission President

Negotiation Context and Future Outlook

The pause on the proposed tariffs is set to last until July 14. During this period, the EU is engaged in negotiations with the US, aiming to eliminate all mutual tariffs. While the European Commission has not disclosed specific details about the progress of these discussions, it has acknowledged that some tariffs may remain, prompting the preparation of this list of retaliatory tariffs.

Impact of Existing US Tariffs

Currently, a general 10% US import tariff is in place, along with a 25% duty on steel, aluminum, and automotive products. These additional tariffs affect €370 billion worth of EU exports. The new list serves as a direct response to these existing general and automotive tariffs.

Continued Efforts for Mutual Benefit

European Commission President Ursula von der Leyen has expressed a commitment to continuing negotiations with the US to eliminate trade tariffs. She affirmed that “good deals to be had for the benefit of consumers and businesses on both sides of the Atlantic” are possible.