EU Strikes Back with New Tariff Plans! How $113 Billion US Goods Can Be Taxed

2025-05-07

Tensions are rising again in the transatlantic trade landscape. The European Union is preparing a sweeping set of new tariff plans targeting up to $113 billion worth of US goods, a move that signals increasing frustration with the slow pace of negotiations between Brussels and Washington.

If current trade talks fail to reach a meaningful agreement, the EU is ready to escalate its response, reviving fears of a broader trade conflict.

A Warning Shot from Brussels

According to people familiar with the matter, the European Commission, which handles trade policy for the EU, will soon present the proposal to its member states.

The draft includes a wide range of potential tariffs on American products. Consultations are expected to begin this week and will last around one month before the final list is approved.

The new EU tariff plans come in response to what European officials see as a lack of progress in negotiations. Talks began last month following Washington’s decision to maintain significant tariffs on European exports, despite earlier commitments to reduce trade tensions.

What Is the EU Planning?

The proposal is designed as a countermeasure. If talks fail, these tariffs could be imposed on a variety of US exports. Although the full list of affected products has not yet been made public, the value is estimated at around $113 billion.

This would be in addition to the $24 billion worth of US goods already facing tariffs in the EU, which were introduced in response to the US government’s 25 percent tariffs on steel and aluminum imports.

These earlier duties were part of broader protectionist policies that began during Donald Trump’s administration and continue to influence US-EU trade dynamics today.

Diplomatic Efforts Are Still Underway

Despite the preparation for retaliatory measures, Brussels has not walked away from the table. In fact, the European Commission is expected to submit a new paper to US officials this week, proposing ways to ease trade tensions.

The proposal may include efforts to reduce both tariff and non-tariff barriers and explore mutual investment opportunities.

Still, progress has been limited. Although the US agreed in May to reduce the reciprocal tariff rate on most EU exports from 20 percent to 10 percent, the EU’s latest data suggest that US trade actions now threaten up to $622 billion worth of EU exports.

A History of Escalating Measures

The back-and-forth has a long history. The EU has previously delayed implementing some of its planned tariffs in the hope that negotiations would succeed. The current 90-day delay is one such example, introduced after Washington’s slight easing of duties.

However, many in Brussels now believe that unless clear breakthroughs are achieved soon, further delays would no longer serve Europe’s interests.

Among the US actions still in place are 25 percent tariffs on cars and car parts, as well as trade investigations that could lead to duties on a broad range of goods including lumber, semiconductors, pharmaceuticals, trucks, and critical minerals. These actions have strained relations and added complexity to the negotiation process.

Frequently Asked Questions (FAQ)

1. What are the EU’s new tariff plans?

The EU is considering imposing tariffs on $113 billion worth of US goods if trade negotiations fail to progress.

2. Why is the EU planning new tariffs on US products?

The tariffs are a response to continued US trade barriers, including duties on steel, aluminum, and vehicles, and slow movement in resolving trade disputes.