AsianFin -- The European Union will formally initiate a dispute at the World Trade Organization over U.S. tariffs, and gets ready for possible countermeasures in case of failure to reach agreements with the Trump administraion.
Credit：the European Commision
The EU will launch a WTO dispute against the US on its universal so-called “reciprocal” tariffs and tariffs on cars and car parts, by formally lodging a request for consultations, the European Commission announced on Thursday. “It is the unequivocal view of the EU that these tariffs blatantly violate fundamental WTO rules. The EU's objective is thus to reaffirm that internationally agreed rules matter, and these cannot be unilaterally disregarded by any WTO member, including the US,” said the EU’s executive branch in a statement.
In parallel, the European Commission has launched a public consultation on a list of US imports for the possible EU countermeasures, if ongoing EU-US negotiations do not result in a mutually beneficial outcome and the removal of the US tariffs. The list of U.S. goods, which could be subject to the countermeasures, is totally worth of €95 billion ($107.4 billion), covering a broad range of industrial and agricultural products.
The list that the EU drew up includes more than 4,800 goods that might be targeted by the EU in response to the reciprocal tariffs as well as tariffs on EU cars imposed by the United States, such as passenger cars, medical devices, chemicals and plastics. Bourbon and other spirits have also reappeared on the list, after wine-producing EU members France and Italy reportedly had earlier lobbied to exclude them to avoid provoking a stronger response from U.S. President Donald Trump on their own exports.
The European Commission is also requesting consultation on possible restrictions on certain EU exports of steel scrap and chemical products to the US worth €4.4 billion. This consultation is designed to address both the US universal tariffs and the tariffs on cars and car parts, said the Commission.
The European Commission on Thursday said it has approved a €5 billion French re-insurance scheme for export credit to facilitate the export of wines and spirits to the U.S. The scheme will be in place from May 8 to July 8 2025 and will allow exporters of wines and spirits to export inventory to the U.S., prior to the announced new wave of tariffs going into effect. The bloc imports of the targeted goods totaled over €109 billion in 2024, and aircraft accounted for the largest share at more than €13 billion, followed by automobiles at €7 billion, according to Eurostat.
“Tariffs are already having a negative impact on the global economies. The EU remains fully committed to finding negotiated outcomes with the US,” said European Commission President Ursula von der Leyen. ”We believe there are good deals to be made for the benefit of consumers and businesses on both sides of the Atlantic. At the same time, we continue preparing for all possibilities, and the consultation launched today will help guide us in this necessary work.”
Trump said on April 9 in a post he has authorized a 90-day pause and “a substantially lowered reciprocal tariff” of 10% during this period, both effective immediately. The White House clarified that Trump’s announcement of a 90-day pause on tariffs means that the “tariff level will be brought down to a universal 10% tariff” during that time, while “negotiations are ongoing.”
The EU a day later decided to temporarily pause the implementation of its countermeasures for talks over possible trade deals. The European Commission estimated a total of nearly €21 billion worth of goods imported from the U.S. will be affected by its countermeasures against U.S. tariffs on steel and aluminum imports.
“We took note of the announcement by President Trump. We want to give negotiations a chance. While finalising the adoption of the EU countermeasures that saw strong support from our Member States, we will put them on hold for 90 days, ” von der Leyen said in a statement on on April 10.
Von der Leyen still cautioned U.S. higher tariffs on the EU. “If negotiations are not satisfactory, our countermeasures will kick in. Preparatory work on further countermeasures continues,” head of the EU executive branch said. “As I have said before, all options remain on the table.”
