The European Commission is considering possible tariffs on US goods in response to threats from the Trump administration. The scope includes a wide array of products valued at around $845 billion.
EU's Stance on Tariffs
The European Commission is gathering insights on potential measures to respond to US threats aimed at eliminating a $235.6 billion trade deficit. The proposed tariff package includes levies on cars and bourbon, but the list has yet to be presented to EU member states.
Trump's Countermeasures
US President Donald Trump announced plans to impose a 30% tariff on EU goods, triggering a negative reaction in financial markets, including a slump in French and German bonds. Previously, he enacted a 25% duty on steel and aluminum imports from Europe, leading to retaliatory tariffs from the EU amounting to $23.8 billion.
Ongoing Negotiations and Consequences
Despite the tariff threats, the European Commission aims to continue negotiations with the US. Trade Commissioner Maros Sefcovic stated the need to protect the EU economy while emphasizing the importance of reaching an agreement. Should negotiations fail, the EU plans to implement counter-tariffs on US goods worth about 11 billion euros, including cars and electronics.
Negotiations between the EU and the US regarding trade terms continue amid threats of new tariffs, with both sides preparing for possible escalations in the trade conflict.
