EU Tariff Targets Include Boeing, US Cars and Bourbon
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The European Union has finalized a second list of countermeasures to target U.S. goods worth 72 billion euros ($84 billion), including Boeing Co. aircraft, automobiles and bourbon if it decides to retaliate against Donald Trump’s tariff policy.
Trump on July 14 said he is still open to more trade negotiations with the EU after announcing over the weekend a 30% levy on EU imports that will kick in on Aug. 1 if the two sides fail to agree on a better deal. EU trade chief Maros Sefcovic was planning to speak with U.S. Commerce Secretary Howard Lutnick late July 14 as he pushes for a settlement that the EU insists must be mutually beneficial to both sides.
“We’re always open to talk,” the U.S. president told reporters at the White House. “We are open to talk, including to Europe. In fact, they’re coming over. They’d like to talk.”
Over the weekend, Trump set out his plans for higher EU tariffs, which Sefcovic called “effectively prohibitive” to transatlantic trade. EU trade ministers met in Brussels on July 14 to discuss next steps.
The EU's list of tariff targets includes Boeing aircraft. (Ted S. Warren/Associated Press)
The additional EU duties would also be slapped on U.S. machinery products, chemicals and plastics, medical devices, electrical equipment, wines and other agricultural goods, according to a 206-page list prepared by the European Commission and seen by Bloomberg News.
The list, initially hitting American goods totaling 95 billion euros, was cut down after consultations with companies and member states. Countries must give their approval before the list’s adoption. The suite of measures pre-dates the weekend letter threatening to raise tariffs to 30% and represents the EU’s response to an earlier so-called reciprocal tariff of 20% hitting most goods as well as the additional levies on cars and car parts of 25%.
European Commission representatives did not immediately respond to a request for comment early July 15. The list, which was reported earlier by Politico, does not include a tariff rate for the goods.
The preference among most EU officials is to keep negotiations on track, while maintaining the threat of retaliation.
A 30% tariff on EU exports would hurt businesses, consumers and patients on both sides of the Atlantic.
We will continue working towards an agreement by August 1.
At the same time, we are ready to safeguard EU interests on the basis of proportionate countermeasures. — Ursula von der Leyen (@vonderleyen)
“We have until the end of this month to conduct the talks. Over the weekend, I added my voice to calls for not applying reciprocal levies,” German Chancellor Friedrich Merz said July 15 at a news conference in Bavaria. “But the American government shouldn’t underestimate our willingness to react to an excessive tariff burden with similar measures.”
Benjamin Haddad, France’s minister for European affairs, said the response from Brussels should include the option of using the EU’s anti-coercion mechanism — which can be invoked to impose taxes on U.S. tech giants. “In this negotiation, you need to show strength, you need to show force, unity and resolve,” Haddad told Bloomberg Television.
Over the weekend, the EU announced it was set to extend a suspension of tariffs on a first list of 21 billion euros of U.S. products in response to additional steel and aluminum tariffs from Trump.
The EU’s new list of targeted U.S. products includes more than 65 billion euros of industrial goods, including mostly aircraft (nearly 11 billion euros), machinery (more than 9.4 billion euros) and cars (nearly 8 billion euros). More than 6 billion euros of U.S. goods hit are agrifood products, mostly fruits and vegetables (nearly 2 billion euros) and alcoholic drinks (1.2 billion euros).
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The broad package also includes precision equipment and instruments (nearly 5 billion euros), toys and hobby equipment (more than 500 million euros), sports guns (nearly 300 million euros) or musical instruments (around 200 million euros).
Some of the criteria to choose the goods were the availability of alternative sources of supply and products where the risk of relocation is high, according to the document. Imported military products will not be subject to the duties.
Written by Jorge Valero, Lyubov Pronina and Alberto Nardelli
