The EU plans to impose tariffs worth 100 billion euros on US goods: The risk of trade negotiations breaking down intensifies
On May 6, 2025, the European Union plans to impose retaliation tariffs on approximately 100 billion euros worth of U.S. goods as a precautionary measure to prevent potential breakdowns in trade negotiations. This action will add to the current tariffs on 21 billion euros of U.S. goods and may also extend to restrictions on services and export controls. The EU has expressed concerns about the U.S. expanding tariffs and investigations and has begun internal consultations to prepare for a comprehensive counteraction. Since negotiations began in April, progress has been slow. The EU is seeking substantial concessions but is not ruling out any options.
Key Updates
05/06 14:01
The EU plans to impose tariffs worth 100 billion euros on US goods: The risk of trade negotiations breaking down intensifies
On May 6, 2025, the European Union plans to impose retaliation tariffs on approximately 100 billion euros worth of U.S. goods as a precautionary measure to prevent potential breakdowns in trade negotiations. This action will add to the current tariffs on 21 billion euros of U.S. goods and may also extend to restrictions on services and export controls. The EU has expressed concerns about the U.S. expanding tariffs and investigations and has begun internal consultations to prepare for a comprehensive counteraction. Since negotiations began in April, progress has been slow. The EU is seeking substantial concessions but is not ruling out any options.
EU Prepares New Round of Retaliatory Tariffs
According to reports from multiple media outlets citing informed sources, the EU has drafted a potential tariff list targeting U.S. goods, valued at approximately 100 billion euros. This list is expected to be submitted to EU member states on May 7, initiating a one-month consultation process to clarify the details and scope of the final tariff items. EU officials emphasize that the list is not finalized and may be adjusted based on negotiation progress.
This plan is seen as one of the EU's strategies to pressure the U.S., aiming to secure more favorable conditions at the negotiating table. The EU is expected to submit a negotiation document to the U.S. this week, including proposals to reduce bilateral trade barriers and non-tariff barriers and promote European investment in the U.S.
Current Retaliation Mechanism and New Measures in Parallel
Currently, the EU has imposed retaliatory tariffs on U.S. goods worth 21 billion euros in response to the Trump administration's previous 25% tariffs on European steel and aluminum products. These measures remain in effect and have not been withdrawn due to the new round of negotiations.
Additionally, the EU and the U.S. reached an agreement earlier this month to suspend new retaliatory measures for 90 days as one of the negotiation conditions. In response, the U.S. will reduce the "reciprocal tariffs" on most European export goods from 20% to 10%. However, EU officials point out that this concession does not substantially change the overall tariff pressure on European goods.
U.S. Tariffs and Investigations Expand, EU Pressure Increases
The EU states that the U.S. has imposed or plans to impose tariffs on European goods worth up to 549 billion euros, covering a wide range including automobiles and parts, timber, pharmaceuticals, semiconductors, critical minerals, and trucks. EU Trade Commissioner Maroš Šefčovič notes that these measures already cover 70% of the EU's total exports to the U.S., and if the U.S. implements new tariffs, the coverage could rise to 97%.
Šefčovič states that the EU is closely monitoring the progress of U.S. trade investigations and has activated internal mechanisms to prepare for diverse countermeasures, including tariffs, service restrictions, and export controls, if necessary. He emphasizes that while negotiations remain the EU's priority, "all options are on the table."
Slow Progress in Negotiations, EU Seeks Substantial Concessions
Since the EU and the U.S. launched a new round of trade negotiations in April 2023, progress has been limited. The EU has submitted a negotiation document to the U.S., covering specific suggestions to reduce trade and non-tariff barriers and promote European investment in the U.S., hoping to drive substantial negotiations.
However, EU officials point out that the U.S. lacks specific concessions on several key issues, leading to a stalemate in negotiations. The EU Trade Commission spokesperson declined to comment on the negotiation details but emphasized that the EU is ready to activate comprehensive countermeasures if negotiations break down.
EU Internal Consultations Begin, Final Tariff List Drafted
According to informed sources, the European Commission has submitted the proposed retaliatory tariff list to member states, initiating a one-month consultation process. The list will be adjusted and detailed during this period, with the final version expected to be finalized in early June.
EU officials state that this list will be implemented in parallel with the current retaliatory tariffs on U.S. goods worth 21 billion euros, further increasing pressure on the U.S. The EU is also evaluating whether to impose restrictions on specific U.S. service sectors and export projects to expand the scope of countermeasures.
EU Emphasizes Negotiation Priority but Does Not Rule Out Any Options
Despite the EU initiating the preparation process for retaliatory tariffs, Šefčovič still emphasizes that negotiations remain the EU's first choice. He states, "We will not accept an unfair agreement, but we still hope to resolve the issue through negotiations."
The EU is also strengthening cooperation with other trade partners, seeking to establish a more robust alliance in the global trade system. Šefčovič notes that the EU is accelerating free trade agreement negotiations with countries such as India, Indonesia, the Philippines, Thailand, and Malaysia to diversify its trade reliance on the U.S.
