The European Union will hit back at the United States with €95 billion in counter tariffs, if the US does not back down.
European Commission says that its preference remains reaching a deal with President Trump to get rid of the tariffs he has imposed on the EU.
Trump tariffs are hitting 70 percent of EU exports to the US.
The EU-US is the biggest trading relationship in the world, worth €1.6 trillion.
The European Commission has prepared possible countermeasures that would hit €95 billion of US exports to the EU.
It has now launched a consultation with member states and industry.
An EU official admitted that the final list would likely be somewhat smaller following lobbying by governments and manufactuers.
The European Commission proposes to hit US exports of aircraft worth €10.5 billion, €6.4 billion of agrifood products including sweet potatoes, olive oil and nuts, €12.9 billion of chemicals and plastics and €12 billion worth of machinery.
The EU will also target €10 billion worth of health products including medical products. But pharmaceuticals are not included because – so far – the US has not imposed tariffs on EU pharma, particularly exports from Ireland.
The Chair of the Internal Markets Committee in the European Parliament, Anna Cavazinni said it is right that the EU gets tough on the US.
“”I am pleased that the European Commission is now shifting gears with its response to Donald Trump’s unjustified arbitrary tariffs.
We must not be blinded by the current tariff pause.
Many of Trump’s tariffs are already in place. Therefore, we must implement targeted countermeasures if he persists with the existing tariffs.
At the same time, the European Commission must continue to try to negotiate. The red line is clear: under no circumstances should we lower our standards or weaken European laws, such as digital legislation, agricultural standards, or the methane regulation.”
The Irish government said that it would begin analysing the European Commission’s list.
Tánaiste Simon Harris said that he wanted the EU to keep on trying to reach an agreement with the US.
“These negotiations remain the main focus for both the EU and Ireland. The Commission is fully engaged in discussions with the US. A negotiated solution remains very clearly the goal and the preferred outcome. I strongly support this position. This is also the message I have been delivering in all my bilateral contacts with both the US and EU partners.
“At the same time, I understand the need for the EU to undertake further internal preparations in case negotiations are unsuccessful. This is a sensible and measured approach. It is really important to stress that these measures will not be implemented immediately. There will be a four week consultation period during which the Commission will be seeking the views of Member States as well as of business and other stakeholders in Europe.
“The proposed package is valued at around €95-€100 billion and covers a range of sectors. The list has just been published and we will be analysing it over the coming days.
“I am committed to working with stakeholders, including through the Government Trade Forum, to understand the potential impact of these countermeasures on Ireland. As we have done in the past, we will communicate Irish specific concerns to the Commission.
“I remain in close contact with Commissioner Sefcovic. I will also be continuing my outreach both with the US and with EU colleagues and I am planning to speak with key partners in the days ahead.”