EU publishes US product hit list, prepares for WTO action against Trump's tariffs

BRUSSELS: The European Union published on Thursday a list of US imports that it would target with retaliatory duties if no solution is found to end US President Donald Trump's tariff war, which could include aircraft maker Boeing.

At the same time, the EU's executive branch, the European Commission, said that it would begin legal action at the World Trade Organisation over the "reciprocal tariffs" that Trump imposed on countries around the world a month ago. "The EU remains fully committed to finding negotiated outcomes with the US," commission President Ursula von der Leyen said. "At the same time, we continue preparing for all possibilities." The commission manages trade deals and disputes on behalf of the 27 EU countries.

In early April, Trump imposed a 20 per cent levy on goods from the EU as part of his tariff onslaught against global trading partners. A week later he paused them for 90 days to give countries a chance to negotiate solutions to US trade concerns. A blanket 10 per cent tariff still applies to EU imports. The commission drew up countermeasures to target 20.9 billion euros (USD 23.6 billion) of US goods, roughly the equivalent of what Trump would be hitting in Europe.

But it also paused them for 90 days to give negotiations a chance. The bloc's top trade official has shuttled between Brussels and Washington trying to find a solution, but with little to show, the commission has made public a list of American imports for possible targeting worth 95 billion euros (USD 107 billion). The list is broken down into sectors and broad categories of products rather than brand names. It contains 10.5 billion euros (USD 11.9 billion) worth of aircraft, 10.3 billion euros ($11.6 billion) in vehicle parts and 2 billion euros (USD 2.3 billion) in vehicles. Around 1.3 billion euros (USD 1.5 billion) in imports of US wine, beer and spirits could also be hit. European wine producers have been deeply concerned that Trump's tariffs would deal a severe blow to their sector, which relies on the US as its top market. Interested companies and parties are being given until June 10 to provide feedback, before the commission decides on the next steps. "Boeing is very welcome to make comments on this list," a commission official said, briefing reporters on the list and the rationale for the EU's approach. In parallel, the commission said that it would be taking legal action at world trade's governing body, and would soon request consultations with the United States to try to resolve the issue, which must take place within two months. It said that this action would focus on Trump's "universal" reciprocal tariffs, and duties on cars and car parts. "It is the unequivocal view of the EU that these tariffs blatantly violate fundamental WTO rules," a statement said. The commission estimates that 379 billion euros (USD 428 billion) of EU exports to the US have been hit by new tariffs, including those on pause until mid-July, since Trump took office. It said they are already "raising costs for business, stifling growth, fuelling inflation and heightening economic uncertainty."