EU to launch dispute against U.S. tariffs as it sets out 95 billion euros in countermeasures
EU Commissioner for Trade and Economic Security, Interinstitutional relations and Transparency, Maros Sefcovic attends a press conference at the end of a Foreign Affairs council in Trade format at the EU Council building in Luxembourg on April 7, 2025.
Jean-christophe Verhaegen | Afp | Getty Images
The European Union’s executive arm on Thursday said it would launch a dispute with the World Trade Organization over the U.S.’s “reciprocal” tariff policy and duties on cars and car parts.
The European Commission also said it had launched a public consultation on countermeasures targeting U.S. imports worth 95 billion euros ($107.4 billion), to be implemented if a trade deal is not reached with Washington.
The list features hundreds of agricultural and industrial items, along with bourbon, tequila and other spirits — a sore point between the trading partners, with the U.S. President Donald Trump in March threatening to put a 200% tariff on EU alcohol imports.
Numerous aircraft and vehicle components are also included, expected to hit U.S firms such as planemaker Boeing.
“It is the unequivocal view of the EU that these [U.S.] tariffs blatantly violate fundamental WTO rules,” the European Commission said in a statement.
“The EU’s objective is thus to reaffirm that internationally agreed rules matter, and these cannot be unilaterally disregarded by any WTO member, including the US.”
The dispute will take the form of formally lodging a request for consultations.
In a press conference on Wednesday, European Trade Commissioner Maros Sefcovic said the EU’s main focus was negotiating a deal to avoid Trump’s 20% reciprocal tariffs on all U.S. imports from the bloc. Trump has also slapped a 25% tariff on all imported vehicles, hitting many European automakers.
However, Sefcovic added that EU continued to “prepare for any scenario.”
In a Thursday statement, EC President Ursula von der Leyen 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.”
The EU has paused an initial set of retaliatory measures agreed by member states in April — a response to U.S. duties of 25% on steel and aluminum — to enable negotiations. The countermeasures, if implemented, will target around 21 billion euros ($24.1 billion) worth of U.S. goods ranging from agricultural products to clothing, chiefly with a tariff rate of 25%.
John Plueger, chief executive of Air Lease Corp, told an analyst call on May 6: “Any measures that would seriously threaten deliveries of Boeing airliners to Europe, for example, on top of China would be a serious challenge even if that’s the airline’s responsibility.”
The company purchases Boeing aircraft and leases them to airlines around the world.
“If tariffs were to remain long term, it could ultimately serve as an incentive for U.S. aerospace manufacturers to look outside the US to start additional production lines for product delivery outside the US,” Plueger added.
The U.K. is set to become the first country to strike a trade deal with the U.S. amid the current tariff turbulence, with an announcement scheduled for 10 a.m. ET Thursday.
— CNBC’s Ganesh Rao contributed to this story
Source – Middle east monitor
