The European Union is looking to give itself some leverage against the Trump administration, releasing a plan on Thursday to hit the United States with additional tariffs if trade negotiations don’t come to fruition.
The European Commission unveiled two steps it would take against the United States, including a higher tariff on more than $100 billion worth of U.S. goods and unleashing a trade dispute against the United States with the World Trade Organization, The New York Times reported. The European Union announced its retaliation plan as President Donald Trump said he will agree to a “major deal” with the United Kingdom on Thursday.
“We believe there are good deals to be made for the benefit of consumers and businesses on both sides of the Atlantic,” said European Commission President Ursula von der Leyen. “At the same time, we continue preparing for all possibilities, and the consultation launched today will help guide us in this necessary work.”
The European Union says American goods on the list that could be hit with an additional tariff include a wide range of products from cars and airplanes to grain and meat. The bloc is also considering a restriction on exports of scrap steel and chemical products. The list is not final, and the European Commission will review feedback on it before providing a final list over the summer, according to Axios.
Trump slapped a 20% tariff on the European Union in his “Liberation Day” tariff rollout last month. The bloc retaliated, hitting U.S. goods with a 25% duty, but after Trump announced he would lower tariffs to 10% across the board for most countries, the European Union suspended its retaliatory action for 90 days. Trump’s 25% tariff on aluminum and steel products and car imports remains in effect.
While Trump did not reveal any details of the upcoming deal with the United Kingdom, he said the agreement “is a full and comprehensive one that will cement the relationship between the United States and the United Kingdom for many years to come.” A British official also told The New York Times that the deal would benefit both countries, but did not offer specifics.
The agreement with the United Kingdom could give the European Union a better hint at how to negotiate with the Trump administration in the coming weeks. Trump said earlier this week that his administration “could sign 25 deals right now,” but added that it’s up to other countries “to sign deals with us.”
