The European Union unveiled a €72 billion ($84.13 billion) countermeasures list targeting U.S. exports, including aircraft, automotive products, and bourbon whiskey, following President Donald Trump‘s threat to impose 30% blanket tariffs on EU goods starting August 1.
What Happened: The European Commission’s 200-page proposal, seen by Politico on Monday, marks the bloc’s second round of trade countermeasures against escalating U.S. tariff threats. Aircraft and aircraft parts represent the largest category at nearly €11 billion ($12.85 billion), potentially delivering a significant impact to Boeing Co. (NYSE:BA).
Industrial goods comprise €65.7 billion ($76.77 billion) of the targeted exports, while agricultural products account for €6.4 billion. The list includes bourbon whiskey despite intense lobbying from France and Ireland to protect the drinks sector from Trump’s trade reprisals.
Machinery, automotive products, chemicals, plastics, medical devices, electrical equipment, and industrial goods all fall into multibillion-euro categories. The total represents a reduction from an earlier €95 billion ($111.01 billion) proposal.
The Commission’s targeting criteria focus on “rebalancing the playing field” against U.S. tariffs affecting EU exports, availability of alternative supply sources, and products with high relocation risk, according to the document.
Why It Matters: Trump’s July 11 letters to Mexican President Claudia Sheinbaum and European Commission President Ursula von der Leyen outlined the 30% tariff regime, citing trade deficits and market access concerns. The EU correspondence criticized “non-reciprocal” trade policies contributing to substantial U.S. trade deficits.
Trump offered tariff exemptions to firms relocating production to the United States, promising expedited approval processes. The administration warned that attempts to sidestep tariffs through transshipment or retaliatory measures would trigger additional penalties.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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