The European Union Plans to Impose Retaliatory Tariffs on American Goods Worth 72 Billion Euros

SadaNews - The European Union has completed preparations for a second list of countermeasures targeting American goods worth 72 billion euros (equivalent to 84 billion dollars), including Boeing aircraft, cars, and bourbon whiskey, in case it decides to respond to rising transatlantic trade tensions.

The additional tariffs are also set to target machinery, chemicals, plastics, medical devices, electrical equipment, wine, and other agricultural products, according to a 206-page list prepared by the European Commission that was reviewed by Bloomberg.

Reciprocal Tariffs

The list initially aimed at American goods worth 95 billion euros, but it was reduced following consultations with companies and member states. Member states must give their approval before adopting the list. This package of measures is in response to what is known as "reciprocal tariffs" imposed by President Donald Trump at a rate of 20% on most goods, along with an additional 25% on cars and parts. The global standard rate was temporarily reduced to 10% to allow for negotiations.

No immediate comment was issued by European Commission representatives this Tuesday morning in response to a request for comment.

Politico had published a report about the list earlier, but it did not include specific tariff rates on the targeted goods.

Over the weekend, Trump announced that he would raise tariffs on EU imports to 30% starting August 1, an action described by European Trade Commissioner Maros Sefcovic as "akin to an effective ban" on transatlantic trade.

EU trade ministers met yesterday in Brussels to discuss the next steps. Sefcovic intended to speak with U.S. Commerce Secretary Howard Lutnick last night to continue negotiations, which the EU insists must be mutually beneficial for both parties.

Suspended Tariffs

Also over the weekend, the EU announced its intention to extend the suspension of tariffs on an initial list of American goods worth 21 billion euros, in response to the additional steel and aluminum tariffs imposed by Trump.

The new list of targeted American goods includes over 65 billion euros worth of industrial products, notably aircraft (about 11 billion euros), machinery (more than 9.4 billion euros), and cars (around 8 billion euros). It also encompasses more than 6 billion euros worth of U.S. agricultural and food products, most of which are fruits and vegetables (about 2 billion euros) and alcoholic beverages (1.2 billion euros).

The broad package also includes precision equipment and devices (about 5 billion euros), toys and hobby equipment (more than 500 million euros), sports weapons (around 300 million euros), and musical instruments (approximately 200 million euros).

According to the document, the selection of goods was based on several criteria, including the availability of alternative supplies from other sources and the high likelihood of production being shifted outside the United States. Military products will not be subject to the tariffs.