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EU Ready to Retaliate with Tariffs on €100 Billion Worth of U.S. Goods if Trade Talks Fail

Wallstreet InsightTuesday, May 6, 2025 8:30 am ET
1min read

The European Union plans to impose additional tariffs on approximately 100 billion euros ($113.26 billion) worth of U.S. goods if trade talks fail to yield a satisfactory outcome for the bloc, Bloomberg News reported on Tuesday.

The proposed retaliatory measures will be shared with EU member states as early as Wednesday, with consultations expected to last for a month before the final list is approved. The report cited people familiar with the matter.

Ask Aime: What will be the EU's next move on US tariffs?

On Tuesday, European Commissioner for Trade Maros Sefcovic warned that during the 90-day suspension period announced by U.S. President Donald Trump, the EU will prepare countermeasures against the significant tariffs imposed by the U.S. on European products and consider all available options. Sefcovic emphasized that the EU does not perceive itself as weak and will not bow to pressure from unfair U.S. trade deals.

The trade negotiations, formally launched between the U.S. and EU last month, have made little progress, with most U.S. tariffs on European goods expected to remain in place. Amid escalating tensions, the EU revealed on Tuesday that Trump's ongoing trade investigations could increase the value of EU goods subject to U.S. tariffs to 549 billion euros.

Sefcovic highlighted the potential impact of U.S. tariff threats, that the U.S. has indicated it may impose tariffs on imports of lumber, pharmaceuticals, semiconductors, critical minerals, and trucks. This would affect an additional 170 billion euros worth of EU goods, covering approximately 97% of the EU's total exports to the U.S.

The EU had planned to present a document to the U.S. this week outlining a series of proposals to reinvigorate trade talks with the Biden administration. These proposals are expected to include measures such as reducing trade and non-tariff barriers, increasing European investments in the U.S., collaborating on addressing strategic challenges like unfair competition, and boosting purchases of American goods.

However, Sefcovic warned that if negotiations fail, the EU is prepared to take retaliatory measures to rebalance trade relations. According to earlier media reports, the EU has been drafting a new list of U.S. goods that could face additional tariffs, while also debating whether to introduce export restrictions.

Ask Aime: "Will the EU's additional tariffs impact US stock prices?"

The first step would be to reinstate tariffs on $21 billion worth of U.S. goods that were previously approved as a response to Trump's steel and aluminum tariffs. Earlier this month, the EU agreed to delay enforcing these measures for 90 days. During the negotiation period, the U.S. has reduced the so-called reciprocal tariff rate on most EU exports from 20% to 10%.

If talks fail, the EU's new list of retaliatory measures will expand further, with plans to impose tariffs on an additional 100 billion euros worth of U.S. goods.

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United-Dot-6129
05/06
"The EU's tariff throwdown is like a bidding war gone wrong, with both sides escalating without a clear winner. It's a trade showdown where the only sure outcome is a standoff, leaving everyone in the dust. Let's hope they call a truce before it's a trade war for the ages.
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Mang027
05/06
@United-Dot-6129 👍
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sniper459
05/06
"The EU's tariff talk is all BARK, but let's see if they bite. After all, trade wars aren't just talk—they can leave everyone in a body bag.
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Very_Guilty_Lawyer
05/06
EU's tariff plan is like playing a game of trade chess. Risky, but could pay off if $US traders blink.
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Fidler_2K
05/06
Retaliation game heats up. Time to hedge?
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portrayaloflife
05/06
$AAPL might feel this tension. Diversify strategy.
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FirmMarket4692
05/06
EU's tariff plan = volatility. Trade carefully, folks.
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DaddyLungLegs
05/06
If EU hits with 100B euros in tariffs, US could feel the pinch. Who's hedging their bets here?
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owter12
05/06
EU throwing shade with tariffs. Trump's gotta dodge this one. 🤔
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elpapadoctor
05/06
Retaliation game is strong. EU not playing nice. Wonder how $TSLA will react?
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HTPGibson
05/06
@elpapadoctor EU flexing hard. Tariffs might hit $TSLA. Watch out.
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digitalice
05/06
@elpapadoctor LOL, EU playing tough.
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VirtualLife76
05/06
Wow!I successfully capitalized on the BABA stock's bearish movement with Premium tools, generating $191!
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