The European Commission is preparing to launch countermeasures against a wide range of U.S. industrial and agricultural products if ongoing tariff negotiations fail to remove U.S. levies and produce a deal beneficial to both parties, the commission said in a May 7 press release.
The targeted imports would be worth roughly $107 billion (95 billion euros), the commission said. The commission is additionally considering export restrictions on European Union steel scrap and chemical products worth nearly $5 billion (4.4 billion euros).
The commission is seeking comments from EU citizens and organizations on the selected U.S. imports, with comments due by June 10.
The commission's proposals are in response to the U.S.’ universal tariffs and levies on cars and car parts and other sectors. The commission described the actions as "unjustified and harmful." U.S. tariffs affect more than $425.5 billion (379 billion euros) worth of EU exports, per the commission.
The EU said it has been in contact with the U.S. to discuss trade issues during a 90-day pause from the Trump administration that ends July 9.
"These negotiations are ongoing both at political and technical level," the commission said. "The EU continues to prepare potential countermeasures to defend its consumers and industry, in parallel with the negotiations and in case these fail to deliver a satisfactory outcome."
Meanwhile, the EU will file a formal complaint against the U.S. with the World Trade Organization, the commission said, arguing that new U.S. duties “blatantly violate fundamental WTO rules."
As an additional countermeasure to U.S. tariffs, the EU is pursuing negotiations with other trading partners to find new export outlets and diversify the European supply chain, the commission said.
"The EU remains fully committed to finding negotiated outcomes with the US. We believe there are good deals to be made for the benefit of consumers and businesses on both sides of the Atlantic," Commission President Ursula von der Leyen said in the commission release. "At the same time, we continue preparing for all possibilities, and the consultation launched today will help guide us in this necessary work."
Following public comment, the commission will finalize its proposed response to U.S. tariffs and consult with EU countries.
Once the commission submits its request for WTO consultation, the EU and the U.S. will have up to two months to agree on a solution, the commission said. If the two parties fail to reach an agreement, the EU will have the option of requesting the establishment of a panel to assess the case's merits.
The commission’s action came the day before the U.S. and the United Kingdom reached terms on the framework of a deal to lower tariffs and expand market access.
