The European Union is preparing to impose tariffs on approximately €95 billion, equivalent to $108 billion, worth of goods imported from the United States. The potential action comes amid stalled trade negotiations with the administration of President Donald Trump.
The proposed retaliatory duties would primarily target industrial products, including aircraft from Boeing Co., automobiles manufactured in the US, and bourbon whiskey. This list represents a significant escalation from previous considerations and follows the initial removal of bourbon from an earlier list of potential targets.
This move is a direct response to various US trade measures implemented or threatened under the current administration. These include tariffs placed on steel and aluminum imports, duties on imported vehicles, and President Trump’s push for reciprocal tariffs on goods from the EU. The administration had also threatened a steep tariff increase on EU alcohol.
The European Commission, the EU's executive body, announced Thursday it has initiated a dispute against the US at the World Trade Organization. The Commission asserts that the US tariff policies unilaterally disregard international trade rules.
A public consultation process has begun regarding the proposed countermeasures and will remain open until June 10. The final list of targeted products and specific tariff rates could change based on feedback received during this period.
The EU had previously paused a set of retaliatory measures initially agreed upon by member states in April. Those measures were intended to respond to the US metals tariffs and targeted about $24.1 billion in US goods, mostly with a 25% duty rate. The pause was implemented to allow for continued negotiations.
Aircraft manufacturer Boeing is among the US firms likely to be affected if the EU implements tariffs on planes or components. Investors watching Boeing stock may see fluctuations depending on the progression of these trade disputes and the potential impact on the company's European sales.
Speaking earlier this week, John Plueger, chief executive of Air Lease Corp, noted the potential disruption tariffs could cause. His company purchases Boeing aircraft for lease globally.
"Any measures that would seriously threaten deliveries of Boeing airliners to Europe, for example, on top of China would be a serious challenge," Plueger said. He added that sustained tariffs could incentivize US aerospace manufacturers to establish additional production lines outside the US for overseas deliveries.
