EU Emphasizes Its $95B 'Counterstrike' Would Still Hit US If Trump Insists His 10% 'Reciprocal Tariffs'

The European Union recently indicated that if U.S. President Donald Trump imposes baseline tariffs on EU goods as widely expected, the EU will retaliate with tariffs on American imports, including Boeing aircraft.

EU officials anticipate that even if a trade agreement is reached, the U.S. will retain some tariffs. Previously, the European Commission, responsible for EU trade affairs, did not explicitly state whether such a move would trigger EU retaliation.

On April 3, President Trump signed two executive orders on so-called "reciprocal tariffs" at the White House on the 2nd, announcing a 10% "minimum benchmark tariff" on trading partners and higher tariffs on certain partners. EU Industry Commissioner Stephane Sejourne stated: "We will need to retaliate and rebalance in some key sectors if the US insists on an asymmetrical deal."

With the July 9 tariff implementation deadline approaching, the EU is intensifying efforts to reach a deal with Washington. Trump has sharply criticized the EU, claiming it was created to "exploit" the U.S. and accusing it of maintaining a trade surplus in goods and erecting barriers against American trade. The EU estimates that current U.S. tariffs on EU exports total €380 billion (approximately $439 billion), covering about 70% of its exports to the U.S.

Negotiations at an Impasse, EU Accuses U.S. of Unfair Demands

Last week, the European Commission informed member states that the U.S. is insisting on demands that could lead to an unfair agreement.

Previous media reports revealed some U.S. demands, including measures related to fish export quotas, which EU officials believe may violate World Trade Organization (WTO) rules, as well as unequal tariff-related actions. Additionally, the U.S. has proposed a series of economic security requirements that EU officials have described as unrealistic.

An unnamed EU official cited in the report said negotiations are accelerating, with the European Commission doing everything possible to reach a mutually beneficial solution. The Commission has been seeking a reciprocal agreement and will assess any final outcome, determining at this stage what level of asymmetry is acceptable. Any decision on retaliatory measures would require coordination and approval from member states.

Aviation Industry a Key Target for Retaliation

Sejourne specifically noted that Airbus, based in Toulouse, France, should not face "unfair competition" from Boeing due to an additional 10% tariff.

"If we don't rebalance, we would leave some leading sectors unprotected," he said. The civil aviation industry is among the sectors most exposed to a trade war.

On his return from the G7 summit in Canada this month, Trump told reporters he did not believe the EU had offered a "fair deal." "They either make a good deal or pay whatever we say they have to pay," he said.

EU Prepares Extensive Retaliation List

The EU has previously approved tariffs on $21 billion worth of U.S. goods to swiftly respond to Trump's tariffs on aluminum and steel exports. According to CCTV News, these tariffs target politically sensitive U.S. states, including retaliatory duties on American motorcycles, whiskey, and boats, alongside a series of new additional measures.

The EU is also preparing an additional list of tariffs on $95 billion worth of U.S. products in response to Trump's so-called reciprocal tariffs and auto tariffs. This list may change as member states and industries seek amendments to protect their respective sectors.

Notably, even if negotiations progress smoothly, many Europeans believe the best-case scenario is a principled agreement allowing talks to continue beyond the July 9 deadline, extending the current tariff suspension.