EU Preparing €100bn Tariff Response as Trade Tensions with Trump Escalate
The European Union is preparing to impose retaliatory tariffs on up to €100bn (£84.7bn) worth of U.S. goods if trade talks with the Trump administration collapse, according to reports.
Brussels may share the proposal with member states as early as Wednesday, with a one-month consultation period expected, Bloomberg reported. The move comes amid mounting concern over potential U.S. tariffs on key EU industries, including pharmaceuticals, semiconductors, critical minerals, lumber, and trucks—measures that could see the U.S. collect an additional €100bn from European firms, warned EU trade commissioner Maroš Šefčovič.
The growing threat of a transatlantic trade war coincides with Chinese President Xi Jinping urging the EU to resist “unilateral bullying” and support multilateralism. Xi, speaking after China confirmed it was lifting sanctions on some European politicians, said China and the EU should “defend fairness and justice” and position themselves as partners in a shifting global order.
Amid these tensions, the EU faces existing 25% U.S. tariffs on steel, aluminium, and cars, along with 10% tariffs on most other goods—tariffs that could rise to 20% when President Trump’s current 90-day pause expires.
Šefčovič told the European Parliament that the EU will not be coerced into accepting an unfavourable agreement. “We do not feel weak. We do not feel under undue pressure to accept a deal which would not be fair for us,” he said, adding that demand for free trade agreements with the EU remains strong.
He warned that U.S. tariffs already impact 70% of EU exports to the U.S., a figure that could climb to 97% under expanded duties.
