EU's Tariff Response: A Trade Standoff with the US Looms

The European Commission has taken a firm stance by proposing imposing tariffs on several high-value U.S. goods, including aircraft, machinery, and cars if trade negotiations with Washington collapse. This move marks the second effort by the Commission to counter U.S. tariffs, particularly a new 30% threat posed by President Trump from August.

Listed are U.S. imports worth 72 billion euros, embracing sectors like electrical equipment, food, and beverages. European officials find these potential heavy tariffs untenable, highlighting that they could severely impair trade relations between the U.S. and the EU.

An initial proposal dealing with 21 billion euros in U.S. goods was suspended to facilitate talks, yet EU trade chief Maros Sefcovic anticipates countermeasures if negotiations derail. This continuing tension underscores the fragility of international trade ties during complex tariff negotiations.

(With inputs from agencies.)