EU Threatens €100 Billion in Tariffs on US Goods if Talks Fail

The European Union has issued a stern warning to the United States: unless trade tensions are resolved through negotiation, the region is prepared to impose retaliatory tariffs on up to €100 billion (US$114 billion) worth of US goods. This escalation follows a series of tariff hikes from the United States targeting a broad swath of EU exports, threatening what officials describe as the most valuable trade and investment partnership in the world.

“We deeply regret the recent increases of US tariffs applied on a very broad range of EU goods. These tariffs are damaging for prosperity, not just in Europe, but foremost in the United States,” said Adam Szłapka, Poland’s Minister of European Affairs, during a meeting in the European Parliament discussing the EU response to US trade measures and new global opportunities. He also highlighted the region’s deep frustration with recent unilateral US tariff increases, citing concerns from the International Monetary Fund (IMF) and World Trade Organization (WTO) over their inflationary and disruptive effects on global supply chains.

The United States has temporarily halved some of its additional universal tariffs — from 20% to 10% — offering a 90-day window for renewed negotiations. Yet, the European Union remains deeply concerned about the scope of existing tariffs and the uncertainty created by several ongoing US trade investigations. These include probes into critical sectors such as pharmaceuticals, semiconductors, minerals, and automotive components, all justified on national security grounds under Section 232.

Maroš Šefčovič, European Commissioner for Trade, says that current US tariffs already affect €380 billion in EU exports, and if pending investigations lead to further action, that figure could rise to €549 billion — 97% of total EU exports to the United States. “This is not acceptable, and we cannot afford to stay idle,” says Šefčovič, warning that the US could collect as much as €100 billion annually in duties if trends continue.

Šefčovič adds that the European Union prefers diplomacy, stating that President Ursula von der Leyen had tasked him with pursuing a negotiated solution. The European Union has proposed eliminating industrial tariffs altogether and collaborating on global overcapacity challenges in sectors like steel and aluminum. Other offers include building resilience in shared supply chains, especially in critical industries.

Despite these efforts, Šefčovič says that the European Union is simultaneously preparing countermeasures. These include potential tariffs targeting US goods, legal action through the WTO, and enhanced import surveillance to prevent trade diversion from non-EU countries affected by US tariffs. “All options remain on the table,” he says.

The European Union has also emphasized the importance of diversification. Šefčovič points to accelerated trade negotiations with partners such as India, Mercosur, and Mexico, alongside ongoing discussions with Southeast Asian nations and the United Arab Emirates, as a way to reduce overdependence on the United States and bolster economic resilience.

The European Council has signaled unity and readiness to act. “We are united in our readiness to engage in a constructive dialogue with the United States. But let me be clear: we will defend our legitimate interests and rights if we have to — and we will do so in a united, targeted, and measured manner,” says Szłapka.