US trade dispute: EU prepares 100 billion euro punitive package

The EU Commission is working on further countermeasures for US goods worth nearly 100 billion euros, according to three people familiar with the matter . The new package could be used as leverage in the strained transatlantic relationship.

The EU is currently in talks with the US to avoid an escalating trade war after Trump imposed tariffs on the EU and other trading partners.

Last week, EU trade chief Sabine Weyand and Björn Seibert, the right-hand man of Commission President Ursula von der Leyen, informed EU ambassadors about plans to offer the US more EU investment in various sectors. At the same time, some American sectors would be threatened with tariffs worth nearly €100 billion. Bloomberg first reported the €100 billion figure.

National diplomats hope to hear more details from the commission as early as Wednesday, including what promises the EU could make to the White House - from buying more American gas, soybeans and weapons to a possible alliance against China.

The €100 billion package will only be used if ongoing efforts to persuade Trump not to reinstate a 20 percent US tariff on EU goods fail, a person familiar with the matter said. Weyand is in Washington this week for technical talks. Trump has suspended the 20 percent tariffs until July.

However, Trump's tariffs on steel, aluminum, and cars from the EU, as well as a flat-rate levy of ten percent on all imported goods, remained in force.

The EU has already openly threatened the US economy with tariffs worth 21 billion euros, which were introduced in response to the US President's 25 percent tariffs on steel and aluminum.

Trump has also repeatedly threatened further tariffs on pharmaceuticals, timber, semiconductors and foreign-made films, which could further burden the EU.

EU Trade Commissioner Maroš Šefčovič told the European Parliament on Tuesday that Trump's measures could affect 97 percent of EU exports to the US, equivalent to a value of €549 billion.

“The situation as such is unacceptable and we cannot afford to remain inactive,” he said.

The European Commission declined to comment.

(om)