The European Commission has finalized a retaliatory tariff list covering €72 billion ($84 billion) worth of American goods, including Boeing aircraft, automobiles, bourbon whiskey and diverse industrial and agricultural products. This decisive action counters U.S. President Donald Trump's threat to impose 30% tariffs on EU imports starting August 1. EU Trade Commissioner Maroš Šefčovič characterized the proposed U.S. duties as "virtually prohibitive," warning of substantial disruption to transatlantic commerce.
Following extensive consultations with businesses and member states, the EU refined its initial €95 billion proposal down to the current €72 billion framework, notably excluding military imports. The 206-page tariff blueprint concentrates over €65 billion on industrial sectors, with aircraft components comprising nearly €11 billion, machinery exceeding €9.4 billion, automobiles accounting for €8 billion, and agricultural products representing €6 billion. Additional categories facing levies include precision instruments, recreational equipment, sporting firearms, toys, and musical instruments.
European Commission President Ursula von der Leyen announced a tactical delay, postponing implementation until early August to facilitate negotiation efforts. Simultaneously, Brussels continues developing supplementary countermeasures. Trump's tariff ultimatum has provoked vehement opposition within EU circles, with affected automakers spanning major transatlantic manufacturers like General Motors (GM.US), Ford (F.US), Stellantis (STLA.US), Tesla (TSLA.US), Volkswagen, and Toyota (TM.US). Alcohol producers including Heineken (HEI.US) and Anheuser-Busch InBev (BUD.US) likewise feature prominently on the retaliation list.
Automotive manufacturing emerges as a primary casualty, with U.S. firms Tesla and Ford anticipating heightened production costs, diminished sales, and potential workforce reductions. European counterparts including Volkswagen and BMW confront multibillion-euro revenue erosion. Industry-wide vulnerabilities intensify as supply chains destabilize globally, threatening consumer price surges across showrooms.
This sweeping tariff architecture signals a dangerous escalation in transatlantic trade hostilities. While emphasizing strict adherence to World Trade Organization protocols, Brussels cautioned that reciprocal tariff warfare guarantees profound economic repercussions for both economies. Facing American pressure, the EU actively pursues trade diversification through alliances with like-minded partners. Lead negotiator Šefčovič confirmed this strategy shift toward multilateral cooperation.
The WTO issued grave warnings that U.S. protectionism risks contracting global merchandise trade, with Director-General Ngozi Okonjo-Iweala condemning Washington's measures as violations of core WTO principles that "are destroying the global economy."