Brussels files WTO complaint and unveils sweeping tariff retaliation plan amid stalled trade talks
The European Commission has announced a sweeping set of potential countermeasures targeting up to €95 billion (US$107 billion) worth of U.S. goods, escalating a transatlantic trade standoff sparked by a series of U.S. tariffs introduced under President Donald Trump.
The EU’s executive arm also said on Thursday it would initiate dispute proceedings at the World Trade Organization (WTO), formally challenging the U.S.’s “reciprocal” tariffs and duties on vehicles and auto parts, which Brussels argues violate fundamental WTO rules.
“The EU’s objective is to reaffirm that internationally agreed rules matter,” the Commission said. “These cannot be unilaterally disregarded by any WTO member, including the U.S.”
Tariffs and retaliation
The proposed EU counter-tariffs, subject to public consultation until June 10, span a broad range of U.S. exports including wine, spirits like bourbon and tequila, aircraft, car parts, fish, chemicals, health products, and industrial machinery. The list notably includes U.S. brands like Boeing, which could face export challenges if the dispute worsens.
Trump’s administration has already imposed a 25% tariff on imported EU steel, aluminium, and cars, alongside a 10% “reciprocal” tariff on most other goods — a rate that could double to 20% after a temporary 90-day pause expires on July 8. The EU’s own suspended response — agreed in April and covering €21 billion worth of U.S. goods — could still be enacted, most likely at a 25% tariff rate.
European Commission President Ursula von der Leyen said the EU remains committed to a negotiated settlement but is preparing for all outcomes. “We believe there are good deals to be made for the benefit of consumers and businesses on both sides of the Atlantic,” she said.
Industry concerns and political signals
The EU has not yet included pharmaceuticals or semiconductors in its countermeasure list, but further U.S. investigations into those sectors could broaden the tariff battle. As of now, U.S. tariffs already affect roughly €380 billion — around 70% — of EU exports to the United States. That could rise to 97% if new duties are imposed on trucks, critical minerals, and tech products.
U.S. Vice President JD Vance acknowledged ongoing talks, saying Washington wants the EU to reduce its own tariffs and regulatory barriers to improve trade balance. President Trump, meanwhile, declared on Thursday that the U.S. had reached a trade deal with the U.K., hinting at progress elsewhere. “We intend to make a deal with Europe,” he added.
A measured EU response
Despite the scale of its proposed countermeasures, EU officials have stressed their aim is a proportionate and legally grounded response. Unlike the U.S., the EU has a smaller volume of goods imported from across the Atlantic — €335 billion in 2024, versus €532 billion in exports — limiting the direct tit-for-tat scope.
The EU is also exploring export restrictions on €4.4 billion of steel scrap and chemical products sent to the U.S., in part to prevent resource diversion and market distortion triggered by Washington’s trade policy.
Should talks fail, the WTO process will begin with formal consultations. If unresolved after two months, the EU can request a dispute panel to adjudicate the legality of the U.S. measures.
In the meantime, businesses on both sides are bracing for higher costs, with leasing companies like Air Lease Corp. warning of ripple effects across sectors, particularly aviation. “If tariffs were to remain long term,” CEO John Plueger said, “it could ultimately serve as an incentive for U.S. aerospace manufacturers to start additional production lines outside the U.S.”
