The European Union is preparing retaliatory tariffs on nearly €100 billion ($113 billion) worth of U.S. goods if ongoing trade talks with Washington fail, European diplomats revealed on Wednesday.
The planned measures come in response to President Donald Trump’s escalating trade actions, including a recent 20% tariff imposed on a broad range of EU exports a move currently on a 90-day pause set to expire in July.
According to sources briefed on the matter, the European Commission, which leads trade negotiations for the bloc, informed EU member states last week of its contingency strategy: a sweeping tariff package targeting American goods equivalent in value to the affected European exports.
While the full list of targeted U.S. products is expected to be released Thursday, early reports suggest Boeing aircraft may be among the most high-profile items in the EU’s crosshairs.
“If talks don’t deliver, we must be ready to defend our industries,” one diplomat told AFP.
Currently, a 10% “baseline” tariff applies to U.S. goods entering the EU. However, EU officials warn that a full-blown tariff escalation could impact nearly 97% of the bloc’s exports to the U.S., totaling around €549 billion, if Washington proceeds with ongoing probes into sectors like pharmaceuticals, wood products, and automotive parts.
EU Trade Commissioner Maroš Šefčovič told the European Parliament earlier this week that 70% of EU exports are already facing tariffs ranging from 10% to 25%, with the risk of further levies looming.
The tension has reignited calls within Europe for reciprocal action. Airbus CEO Guillaume Faury told AFP on Tuesday that Europe should not hesitate to impose counter-tariffs on U.S. aircraft if negotiations break down.
“We believe reciprocal tariffs on aircraft may be necessary to elevate the talks to a more balanced level,” Faury said.
While the European Commission and Boeing declined to comment on the matter, trade experts say the inclusion of high-value items like aircraft signals the EU’s intent to match U.S. pressure point for pressure point.
The next round of negotiations is expected in the coming weeks, but with both sides digging in, fears of a full-scale transatlantic trade war are mounting.
