US 'Blatant' Tariffs Spark EU Backlash As Bloc Plans WTO Challenge, Proposes $107 Billion in Countermeasures
In a bold move against the United States’ tariff policy, the European Union (EU) is preparing to present its case at the World Trade Organization (WTO). The EU is also proposing countermeasures worth €95 billion ($107.4 billion).
What Happened: The European Commission is planning to challenge the U.S.’s “reciprocal” tariff policy and duties on cars and car parts at the WTO. The Commission has also launched a public consultation on potential countermeasures affecting €95 billion worth of US imports, to be enacted if a trade deal with Washington fails to materialize, CNBC reported on Thursday.
The proposed countermeasures span a wide range of agricultural and industrial goods, including alcoholic beverages such as bourbon and tequila. The EU is currently negotiating to prevent President Donald Trump from imposing a 20% reciprocal tariff on all U.S. imports from the bloc, as well as a 25% tariff on imported vehicles and the same rate on steel and aluminum.
The list of countermeasures, released on Thursday by the EU, includes numerous aircraft and vehicle components, potentially affecting US companies like Boeing (NYSE:BA).
"It is the unequivocal view of the EU that these [U.S.] tariffs blatantly violate fundamental WTO rules," the European Commission stated.
Why It Matters: The EU’s proposed countermeasures come in the wake of threats to impose additional taxes on U.S. tech giants like Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) and Meta Platforms Inc. (NASDAQ:META) if the ongoing tariff negotiations fail. This move also follows U.S. Vice President JD Vance‘s recent comments emphasizing unity between the U.S. and Europe, a significant shift from his previous stance.
Despite the ongoing tariff turbulence, the U.K. has become the first country to secure a trade arrangement with the U.S. President Donald Trump has expressed his intent to strike a deal with Europe, even though he claims that the EU treats the US “unfairly” in trade matters.
At the same time, EC President Ursula von der Leyen stated, "The EU remains fully committed to finding negotiated outcomes with the U.S. We believe there are good deals to be made for the benefit of consumers and businesses on both sides of the Atlantic."
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