The European Commission (EC) has threatened to hit €95bn worth of US imports into Europe with counter tariffs and threatened to restrict exports of critical minerals and chemicals to the US, as Brussels steps up its response to Donald Trump’s trade policy.

Europe was also filing a complaint at the World Trade Organization (WTO) against the US’ reciprocal tariffs and its measures on the auto-sector.

Brussels is also considering restrictions on exports of scrap steel and chemical products, worth a total of €4.4bn. 

‘Unjustified and harmful’

“Since the US imposed its unjustified and harmful tariffs, the EU has prioritised finding a mutually beneficial and balanced solution through negotiations, including within the framework of the 90-day partial suspension of tariffs announced by the US”, the EC said in a press statement.

While stressing that the negotiations would continue, the EU was preparing “potential countermeasures to defend its consumers and industry” in case the negotiations fail.

The list covers a wide range of different products, including meat products, manufacturing parts and chemicals. A public consultation is being launched on the proposals.

European member states will be consulted, and anyone affected by the measures will have four weeks to submit their views.

Background

Trump had hit EU goods with a blanket 20% tariff rate as part of his ‘reciprocal’ tariff policy. Additionally, the White House announced EU imports of vehicles, steel, aluminium and related goods would face a higher 25% rate.

Trump later announced a 90-day ‘pause’ to allow for negotiations, but a 10% rate still applies to EU goods.

The EC said that 70% of Europe’s exports to the US were hit by the new tariffs.

‘All possibilities’

EC president, Ursula von der Leyen, said that tariffs were already having a negative impact on the global economy.

The EU remained “fully committed to finding negotiated outcomes with the US,” she added.

“We believe there are good deals to be made for the benefit of consumers and businesses on both sides of the Atlantic. At the same time, we continue preparing for all possibilities, and the consultation launched today will help guide us in this necessary work.”