EU Confirms $84 Billion Tariff Plan on US Goods Amid Growing Trade Dispute

European Commission targets US aircraft, vehicles, and agriculture in response to Trump’s escalating tariffs

Brussels Hits Back in Transatlantic Trade Row

The European Union (EU) has finalised a new tariff list targeting $84 billion (£65 billion / €72 billion) worth of American exports, signalling a sharp escalation in trade tensions with the United States.

The decision follows President Donald Trump's imposition of 20% tariffs on most EU goods and threats to hike duties on EU cars and components to 30% from 1 August.

What’s on the EU’s Target List?

The 206-page document, prepared by the European Commission, outlines a wide array of goods that could face retaliatory tariffs:

• Aircraft manufactured by Boeing
• Automobiles and vehicle parts
• Bourbon and other US spirits
• Agricultural products
• Chemicals and industrial machinery

Originally estimated to cover €95 billion, the scope was reduced after consultations with EU member states and industry representatives.

The list, first reported by Politico, does not yet specify tariff rates for the affected items.

EU's Strategy: Pressure with Precision

This move is a direct response to the US tariffs, with EU officials seeking to demonstrate readiness while keeping doors open for dialogue.

EU Trade Commissioner Maros Sefcovic described Trump's latest tariff proposal as “effectively prohibitive”, particularly the planned 30% duties on EU-made vehicles.

“We are taking firm but proportionate steps to protect EU industry,” Sefcovic said following a ministerial meeting in Brussels.

Diplomatic Talks Ongoing

While tensions rise, diplomatic efforts continue:

• Sefcovic is scheduled for further negotiations with US Commerce Secretary Howard Lutnick
• EU trade ministers remain in close coordination to avoid unnecessary disruption

The EU is believed to be holding back final implementation of the tariffs pending the outcome of discussions in late July.

What This Means for Investors

 US Exporters Under Pressure

US companies in sectors like aviation (Boeing), automotive, and agriculture could see reduced European sales if tariffs are enacted.

 Opportunities for EU Substitutes

European producers of similar goods—especially wine, spirits, and machinery—may benefit from reduced US competition.

 Market Volatility Risk

Further escalation could lead to stock market instability, especially in trade-sensitive sectors and supply chain-reliant industries.

Outlook: Trade Deal or Tariff Spiral?

Investors should monitor:

• US-EU trade negotiations in the coming weeks
• Any signs of compromise before the 1 August tariff deadline
• Impact on US corporate earnings with large EU exposure

For now, the EU appears to be taking a calculated stance, using the tariff list as both a deterrent and a bargaining tool.

Sources: (Investing.com, Reuters.com)