EU targets 95-bln-euro worth of US imports, readies WTO litigation in case trade talks collapse

Flags of the European Union fly outside the Berlaymont Building, the European Commission headquarters, in Brussels, Belgium, Jan. 29, 2025. [Photo/Xinhua]

The European Commission has launched a public consultation targeting U.S. imports worth 95 billion euros (107.2 billion U.S. dollars), warning that retaliatory measures could take effect if ongoing negotiations with the United States fail to yield an agreement, according to a statement released on Thursday.

The consultation covers a broad range of U.S. industrial and agricultural goods, including wine, frozen meat, aircraft, cars and car parts, chemicals, electrical equipment, healthcare products, and machinery.

In parallel, the bloc is also weighing new restrictions on 4.4 billion euros of European Union (EU) exports to the United States, such as steel scrap and chemical products.

Currently, the EU faces 25 percent U.S. tariffs on steel, aluminum, and automobiles, alongside 10 percent baseline duties on most other exports. The bloc has been preparing for a possible end to a 90-day tariff truce, which is set to expire on July 8. If no deal is reached, the U.S. universal tariffs could rise to 20 percent.

The Commission stated that the consultation on countermeasures aims to address both the universal U.S. tariffs and those specifically targeting cars and auto parts.

At the same time, the Commission announced that the EU will launch a World Trade Organization (WTO) dispute against the so-called "reciprocal" tariffs and duties on vehicles and vehicle components. The EU will submit a formal request for consultations, arguing that the U.S. measures violate core WTO rules.

"The EU's objective is thus to reaffirm that internationally agreed rules matter, and these cannot be unilaterally disregarded by any WTO member, including the U.S.," the statement underlined.

While underscoring the EU's preference for a negotiated solution, European Commission President Ursula von der Leyen emphasized that the bloc "continues preparing for all possibilities."

The Commission noted that nearly 70 percent of EU exports to the United States - amounting to 379 billion euros - are now affected by the new tariffs, including some that are temporarily suspended. These tariffs have increased business costs, slowed economic growth, fueled inflation, and contributed to heightened global economic uncertainty.

Stakeholders are invited to submit feedback on the proposed measures until June 10. Following the consultation, the Commission will finalize its proposal and consult EU member states. If necessary, a legal act imposing tariffs could be swiftly enacted should talks with Washington collapse.

Regarding the WTO dispute, once the EU formally requests consultations, both parties will have up to two months to reach a mutually acceptable resolution. If no agreement is reached, the EU may request the establishment of a dispute panel to adjudicate the matter. (1 euro = 1.13 U.S. dollars)