“The EU remains fully committed to finding negotiated outcomes with the U.S.,” commission President Ursula von der Leyen said. “At the same time, we continue preparing for all possibilities.”
The commission manages trade deals and disputes on behalf of the 27 EU countries.
In early April, Trump put a 20% levy on goods from the EU as part of his tariff onslaught against global trading partners. A week later, he paused them for 90 days to give countries a chance to negotiate solutions to U.S. trade concerns.
A blanket 10% tariff still applies to EU imports.
The commission drew up countermeasures to target 20.9 billion euros ($23.6 billion) of U.S. goods, roughly the equivalent of what Trump would be hitting in Europe. But it also put them on hold for 90 days to give negotiations a chance.
The bloc’s top trade official has shuttled between Brussels and Washington trying to find a solution, but with little to show, the commission has made public a list of American imports for possible targeting worth 95 billion euros ($107 billion).
The list is broken down into sectors and broad categories of products rather than brand names. It contains 10.5 billion euros ($11.9 billion) worth of aircraft, 10.3 billion euros ($11.6 billion) in vehicle parts and 2 billion euros ($2.3 billion) in vehicles.
European airlines are big Boeing customers: German airline Lufthansa has unfilled orders for 101 Boeing planes, and Irish airline Ryanair 184, for example. The American aerospace giant and Airbus, its European rival, dominate the global markets for commercial and military planes.
Boeing did not comment on the European Commission’s announcement Thursday. CEO Kelly Ortberg told a U.S. Senate committee last month that 80% of Boeing's commercial passenger planes go to airlines and other companies outside the U.S.
“So it's important that we continue to have access to that market and that we don't get in a situation where certain markets become closed to us,” Ortberg said.
Under the EU's proposed list, around 1.3 billion euros ($1.5 billion) in imports of U.S. wine, beer and spirits also could take a hit. European wine producershave been deeply concerned that Trump's tariffs would deal a severe blow to their sector, which relies on the U.S. as its top market.
The commission gave interested companies and parties until June 10 to provide feedback, before it decides on the next steps. “Boeing is very welcome to make comments on this list,” a commission official said, briefing reporters on the list and the rationale for the EU’s approach.
Also Thursday, the commission approved 5 billion euros in insurance aid for French wine and spirits exports to the U.S. through July 8, after which the sweeping tariffs announced by Trump are scheduled to go into effect. The plan is mean to help protect French exporters from political risks during the next two months.
In parallel, the commission said that it would be taking legal action at world trade’s governing body, and would soon request consultations with the United States to try to resolve the issue, which must take place within two months.
It said that this action would focus on Trump’s “universal” reciprocal tariffs, and duties on cars and car parts. “It is the unequivocal view of the EU that these tariffs blatantly violate fundamental WTO rules,” a statement said.
The commission estimates that 379 billion euros ($428 billion) of EU exports to the U.S. have been hit by new tariffs, including those on pause until mid-July, since Trump took office. It said they are already “raising costs for business, stifling growth, fueling inflation and heightening economic uncertainty.”
Credit: AP
Credit: AP