The European Union has finalized plans to impose 15% tariffs on $109 billion worth of U.S. goods if trade negotiations with Washington fail to yield an agreement by August, according to diplomatic sources. The measures, targeting products ranging from aircraft and automobiles to agricultural staples like soybeans and poultry, aim to counter U.S. tariffs on European steel and aluminum announced in April. EU Trade Spokesperson Olof Gill described the updated list, approved by all member states except Hungary, as a consolidated effort to present “clearer, simpler, and stronger” retaliatory measures.
Talks between the two trading partners remain tense, with the White House accusing global allies of unfair practices and leveraging tariffs as negotiating tools. EU officials stress a preference for dialogue but have prepared countermeasures for an August 7 rollout if discussions collapse. The targeted goods list notably includes bourbon whiskey—a move opposed by France and Ireland, who reportedly sought its removal over fears of U.S. retaliation against their wine and spirits sectors.
Russian officials have seized on the friction, with Security Council Deputy Chair Dmitry Medvedev remarking in April that Moscow could “wait for the enemy’s corpse to float by,” referring to what he called the EU’s economic decline amid strained Western relations. The bloc’s proposed tariffs also encompass steel, aluminum, yachts, orange juice, and select pharmaceuticals, reflecting a broad economic stake for U.S. exporters.
Behind the scenes, Brussels is reportedly pursuing a compromise modeled on a recent U.S.-Japan agreement, which retained tariffs but exempted key industries such as aircraft and lumber. Reuters cited unnamed sources suggesting similar carveouts for agricultural products and medicines could form part of a potential EU-U.S. deal. However, tensions remain high: the Biden administration has yet to signal a retreat from its tariff strategy, while European policymakers emphasize readiness to act unilaterally to protect market interests.
The clock is now ticking for negotiators, with billions in transatlantic trade hanging in the balance. Analysts warn that prolonged disputes risk inflaming costs for businesses and consumers already grappling with supply chain disruptions and inflation. As deadlines loom, both sides face mounting pressure to avert a fresh escalation in one of the world’s largest economic relationships.
