EU Prepares €72 Billion Tariff List Against US Goods

The European Union has prepared a retaliatory tariff list targeting US goods worth €72 billion, in response to threats of increased tariffs from the United States. This move comes as a countermeasure to potential US tariffs on European goods, which could significantly disrupt transatlantic trade relations. The EU's trade commissioner, Maroš Šefčovič, warned that a 30% tariff on European goods, as threatened by US President Donald Trump, would effectively prohibit trade between the two regions. Šefčovič emphasized that such a tariff would make it nearly impossible for the EU to maintain its current level of trade with the US, leading to severe negative consequences for both sides.

The EU-US trade relationship is substantial, with bilateral trade in goods and services valued at €1.68 trillion last year. This partnership represents nearly 30% of global goods and services trade. The EU's preferred outcome remains a negotiated deal with the US, and Šefčovič plans to engage in discussions with his US counterparts to prevent the implementation of the threatened tariffs. Trump, however, has repeatedly criticized the EU for what he perceives as unfair trading practices, including tariffs on US goods and non-tariff barriers such as taxes on digital services.

The proposed tariffs have led to increased investor anxiety as evidenced by rising bond yields in France and Germany. The EU's move signifies potential market disruptions across various sectors. The EU emphasizes the need for decisive countermeasures to safeguard European jobs, while economic uncertainties could influence market and crypto asset volatility. German Finance Minister Lars Klingbeil remarked, "If a fair negotiated solution does not succeed, then we must take decisive countermeasures to protect jobs and companies in Europe."

The EU's retaliatory tariff list includes a wide range of US goods and is part of a broader strategy to respond to US trade policies. In addition to the €72 billion package, the EU has another retaliatory package ready, which includes export controls and is currently being discussed by member states. This move underscores the EU's determination to protect its interests in the face of potential US tariffs. The EU's actions are a clear signal that it is prepared to take decisive measures to safeguard its trade relations and economic stability.

Previous EU-US trade disputes involved tit-for-tat tariffs, impacting both traditional and digital markets. Current measures are broader, affecting €95 billion in US imports. Future outcomes depend on negotiation success. Market players monitor potential volatility in crypto markets, though no immediate on-chain changes are observed. Emmanuel Macron, President of France, said, "The Commission needed more than ever to 'assert the Union's determination to defend European interests resolutely.'"