EU Greenlights $109 Billion Counter-Tariffs on US Products, If No Agreement Reached Before Aug 1st

On Thursday (July 24), EU member states voted to approve retaliatory tariffs on US products totaling €93 billion (approximately $109 billion).  

It should be noted that these are retaliatory measures that will only be implemented if no trade agreement is reached with the US. Therefore, the tariffs will not take formal effect before August 7.  

The €93 billion countermeasures were formed by merging two previously proposed tariff lists, covering €21 billion and €72 billion worth of US exports to the EU, respectively.  

The €21 billion portion is the EU’s response to US steel and aluminum tariffs. In April, EU member states had agreed on a package of measures, but their implementation was suspended.  

The plan proposed imposing a 25% tariff on most US imports, primarily targeting agricultural products such as poultry, beef, fruit, wheat, barley, oats, vegetable oil, corn, rice, and orange juice.  

Other goods include household appliances like dishwashers and vacuum cleaners, hygiene products such as toilet paper and dental floss, as well as larger items like motorcycles and motorboats. Some products, including diamonds, are subject to a lower tariff of 10%.  

Soybeans and almonds are also on the €21 billion list, but countermeasures for these goods would take effect later than others.  

The €72 billion portion is a response to US "reciprocal" tariffs and auto parts tariffs. Initially set at €95 billion, it was later adjusted to include over €6 billion in agricultural products and nearly €66 billion in industrial goods.  

Industrial items include aircraft and aircraft parts, automobiles and auto components, machinery, chemicals and plastics, medical equipment, and electrical equipment. Agricultural products include spirits like bourbon, wine, livestock, bees, tobacco, and pet food.  

A day earlier, the European Commission stated that its primary goal remains reaching a negotiated agreement with the US government to avoid the 30% tariffs set to take effect on August 1.  

EU diplomatic sources revealed that the two sides appear to be moving toward a possible trade deal, which could lower the threatened US tariff rate from 30% to 15%—similar to the agreement reached between Japan and the US earlier this week.  

However, the final decision still rests with President Trump. Additionally, diplomatic sources indicated that the US does not seem inclined to reduce its steep 50% steel and aluminum tariffs.