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EU Prepares Tariff List Against US Amid Trade Tensions

Word on the StreetWednesday, May 7, 2025 10:02 am ET

1min read

The European Union is set to release a temporary tariff list targeting the United States on Thursday. This move comes as a response to the ongoing trade tensions between the two economic powerhouses. The list, which will be announced by the European Commission, is intended to take effect if trade negotiations with the U.S. fail. The Commission will engage in consultations with EU member states over the next month to finalize the details.

Valdis Dombrovskis, the EU Commissioner for Trade and Economic Security, emphasized the unfairness of the U.S. tariffs, which currently cover 70% of EU exports to the U.S. He warned that this figure could rise to 97% if the U.S. proceeds with further investigations into products such as pharmaceuticals and semiconductors. Dombrovskis stated that the EU cannot remain idle in the face of such actions and is preparing to respond with its own measures.

Dombrovskis highlighted that the EU is exploring multiple options to counter the U.S. tariffs, including legal action to uphold the rules-based multilateral trading system. He also mentioned that the EU is accelerating negotiations for free trade agreements with other global partners. The EU is currently facing a 25% tariff on steel, aluminum, and automobiles, as well as a 10% "base tariff" on nearly all other goods from the U.S. After a 90-day grace period, these "reciprocal tariffs" could increase to 20%.

In addition to continuing negotiations, the EU is preparing for litigation to defend and strengthen the rules-based multilateral trading system. The EU is also expediting free trade agreement negotiations with other global partners. The EU is currently subject to a 25% tariff on steel, aluminum, and automobiles, as well as a 10% "base tariff" on nearly all other goods from the U.S. After a 90-day grace period, these "reciprocal tariffs" could increase to 20%.

This development underscores the escalating trade dispute between the EU and the U.S., with both sides taking steps to protect their economic interests. The temporary tariff list is a clear indication of the EU's resolve to defend its market access and fair trade practices. The outcome of the upcoming negotiations will be crucial in determining the future of transatlantic trade relations.

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