EU threatens to tax US cars and planes in response to Trump

EU threatened on Thursday to tax 95 billion euros worth of U.S. imports, including cars and planes, if negotiations fail to end Donald Trump's tariffs on European products.

The European executive announced it had launched "a public consultation" on a long list of products made in the U.S. which could potentially be affected by European tariffs. This list also includes electrical equipment, batteries, household appliances, as well as agricultural products (fruits, vegetables) or food products like spirits, including wines and bourbon. These imports "could be subject to retaliatory measures" if the U.S. maintains the surcharges targeting EU exports at the end of the ongoing negotiations.

Simultaneously, Brussels will refer to the World Trade Organization (WTO) on trade measures it has suffered from the United States.

The European Commission announced that it would "soon" file a request for consultations with the international organization based in Geneva, the first step in a dispute resolution procedure, concerning the American surcharges. The EU executive denounces "a blatant violation of WTO rules" and intends to "reaffirm the importance of respecting international rules."

The President of the European Commission, Ursula von der Leyen, however, assured that she remained "fully committed" to finding negotiated solutions with Washington. "We believe it is possible to reach good agreements for the benefit of consumers and businesses on both sides of the Atlantic. At the same time, we continue to prepare for all eventualities," she stated in a statement.

In recent months, the EU has been hit three times by tariffs from the U.S. administration: 25% on steel and aluminum, announced in mid-March, 25% on automobiles, and then 20% on all other European products in April. This last surcharge was suspended until July to try to seek a negotiated solution to the trade dispute. However, 10% tariffs are still applied on most goods exported to the U.S. by the Twenty-Seven.

In mid-March, the EU chose to flex its muscles in response to the measures on steel and aluminum. It then announced tariffs of up to 25% on an initial list of U.S. imports worth 26 billion euros. This first list targets iconic brands like Harley-Davidson motorcycles, agricultural commodities like soybeans, but also household appliances like refrigerators or lawnmowers.

The EU's response has not yet come into effect, unlike Trump's initial measures. The European surcharges remain suspended pending ongoing negotiations, scheduled until July, and will only be applied in the event of a failure in discussions.