EU Weighs Counter-Tariffs On €93 Billion Of US Goods Amid Trump’s New Tariff Threat

The European Union is preparing to implement tariffs worth €93 billion ($108 billion) on US goods in response to President Donald Trump’s proposed 10% tariff on selected European countries, as per Bloomberg.  

Scheduled to begin on February 1, the US tariffs could escalate to 25% by June if certain demands are not met, including agreements related to Greenland. 

Trump’s New Tariff Move Sparks EU Response 

President Trump announced a 10% tariff on goods from 8 European countries, stating that the rate may rise to 25% by June. The countries listed include Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands and Finland.  

The motive was reportedly tied to dissatisfaction with NATO military planning exercises in Greenland. EU representatives from 27 countries convened on Sunday to devise countermeasures, with an emergency meeting planned in Brussels later this week. 

European Unity and Possible Trade Retaliation 

The European Council President Antonio Costa emphasised unity among EU nations, stating they stand in support of Denmark and Greenland.  

The French Prime Minister intends to trigger the EU’s anti-coercion instrument for the first time, a measure developed to respond to economic pressure from foreign governments.  

Meanwhile, the European Parliament's leading parties have agreed to halt the approval of a pending trade deal with the US in protest against the tariffs. 

Targeted US Goods and Industrial Impact 

If the EU proceed with tariffs, significant American industries could be affected. The list includes aircraft from Boeing Co., US-manufactured automobiles, and bourbon.  

The retaliation is designed to match the scale of the proposed US tariffs, with the €93 billion tariff plan already approved earlier but paused in anticipation of smoother relations. 

Read More: India-EU Trade Deal Nears Completion as US Talks Continue! 

Potential Trade and Economic Repercussions 

If the full 25% tariff is imposed, exports from the targeted European countries to the US could fall by up to 50%. Germany, Sweden and Denmark are expected to face the largest impact. 

Meanwhile, protests erupted in Denmark against any form of US involvement in Greenland, intensifying diplomatic tensions. US Treasury Secretary downplayed EU retaliation threats, stating the US is leveraging its position for strategic purposes. 

Conclusion 

The EU's readiness to impose tariffs valued at €93 billion marks a significant development in transatlantic trade tensions following President Trump's tariff announcement. As both sides prepare for further diplomatic engagements, economic implications for multiple sectors remain under close watch. 

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