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First with the News

EU Threatens Tariffs On US Cars, Planes, As Trump Trade Deadline Looms

May 8, 2025
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By Ebi Kesiena

The European Union has warned it will impose tariffs on a wide range of American goods, including cars and aircraft worth €95 billion ($107 billion), if ongoing trade talks with the United States collapse.

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On Thursday, the European Commission announced it is prepared to respond forcefully should the US proceed with new import duties proposed by former President Donald Trump, who had threatened a 20% “reciprocal” tariff on most EU goods.

Although the move was frozen until July, a 10% baseline tariff on imports, including those from the EU, remains in place.

Brussels says it is still committed to avoiding an all-out trade war, with European Commission President Ursula von der Leyen urging a negotiated solution. “There are good deals to be made for the benefit of consumers and businesses on both sides of the Atlantic,” she said.

But the EU is preparing for the worst. Alongside filing a formal complaint with the World Trade Organization, the bloc unveiled a detailed 218-page list of potential US goods to target, ranging from aircraft and cars to bourbon whiskey, human hair, nuts, plastics, and chemicals.

According to a senior EU official, automobiles and planes top the list, valued at €12 billion and €10.5 billion respectively. Plastics and chemicals account for another €12.9 billion.

The EU had previously drawn up a smaller list of €21 billion in goods to retaliate against US tariffs on steel and aluminium. Those measures were paused until 14 July to allow space for negotiations.

While a breakthrough deal between the US and the UK has offered a glimmer of hope, Brussels made clear it is ready to act. “All options remain on the table,” the official said, including possible measures targeting US tech giants.

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