BRUSSELS – The European Commission threatened on Thursday to hit powerful US aircraft manufacturers such as Boeing with tariffs, as the EU sought to ratchet up pressure on Donald Trump’s protectionist administration.

The EU has already threatened to hit US goods worth €21 billion but the new threat could impact a further €95 billion worth of US exports to Europe. Nonetheless, the EU’s proposed response still falls well below the €380 billion in EU goods already impacted by Trump’s levies.  

“We’re not the ones starting this,” said a senior Commission official. The EU tariffs would also hit cars, alcohol such as bourbon, and food products. 

The proposed package of tariffs would hit some €1.3 billion worth of alcoholic exports, €8.5 billion of aircraft exports, €7.2 billion of electrical equipment, and €6.4 billion of agri-food exports, the official said.

European businesses now have a month to have their say on the list, before the Commission makes a decision – likely in July – about whether to impose them.

Meanwhile, EU and US negotiators are locked in talks to bury the hatchet, with the EU making clear its preference for a truce which must be reached by the summer. 

“It’s not possible to say today what we will do, we are focused on a negotiated outcome. If we have zero tariffs in July we’ll all go on holiday. We have to be prepared for a situation where some tariffs are still in place,” said the official. 

This means the EU is now dangling the threat of two separate packages of tariffs over the White House. 

The Commission official added he believed that US President Donald Trump’s 10% “universal” levy could be negotiated away but stressed that his 25% duties on European steel, aluminium, and cars, are likely to remain in effect.

The EU’s threatened levies on Boeing could reignite a decades-long trade dispute between the US aircraft manufacturer and its European rival, Airbus. Washington and Brussels agreed to suspend tariffs on both companies in 2021 until 2026.

“Boeing is very welcome to make comments on this list,” said a second Commission official.

A “blatant” violation
The package also includes potential export restrictions on €4.4 billion worth of scrap metal and chemical products.

The goods were chosen because they were deemed critical for American industries but are “not such an important market for our exports”, said the second Commission official.

Separately, the Commission on Thursday filed an official complaint at the World Trade Organization against Trump’s car and “reciprocal” duties. The levies “blatantly violate fundamental WTO rules”, the Commission said.

The announcement follows reports that the European Commission was preparing to hit US with tariffs on €100 billion worth of American goods if negotiations with Washington don’t succeed.

The Commission suspended the package of retaliatory measures worth €21 billion on US goods last month after Trump announced a 90-day “pause” of his “Liberation Day” tariffs, which included a 20% duty on EU goods. 

EU exporters could face duties on 97% of their exports to the US – equating to €549 billion worth of goods – if Trump follows through on his pledge to impose additional tariffs on pharmaceuticals, semiconductors, and lumber, EU Trade Commissioner Maroš Šefčovič said earlier this week.

This article has been updated.

(om)