The European Commission will propose a 25% tariff on a wide range of American products, according to a leaked document obtained by Reuters. The move, intended as a direct response to USA tariffs on European steel and aluminum, highlights rising tensions in transatlantic trade relations.
The new EU tariffs, if approved, will come into effect in two waves: on May 16 for a first group of products, and on December 1 for others. Among the targeted goods are fruit juices, peanut butter, motorcycles, and trousers. However, American bourbon and whiskey were notably removed from the final list of affected products.
A tit-for-tat over steel and aluminum tariffs
The European proposal comes amid mounting frustration over Washington’s continued imposition of tariffs on European goods, introduced by USA President Donald Trump. Although the USA. has since agreed to some tariff-rate quotas with the EU, the bloc still sees the measures as protectionist and unfair.
A Reuters report cited an internal European Commission document, though it remains unclear whether the proposal is a draft or a final submission. Nonetheless, the content outlines the EU’s readiness to retaliate economically if the USA refuses to roll back its duties.
EU’s olive branch: zero tariffs on industrial goods
Simultaneously, the EU is extending a significant offer to Washington: zero tariffs on cars and industrial goods—provided that the USA reciprocates. At a recent press conference, European Commission President Ursula von der Leyen emphasized the bloc’s willingness to strike a fair deal.
“Europe is ready to negotiate with the United States. We have proposed zero-to-zero tariffs on industrial goods because we are always ready to make good deals,” said von der Leyen.
The proposal was reportedly put forward during a meeting last Friday between European Trade Commissioner Maroš Šefčovič and his American counterparts.
This dual-track strategy—combining retaliation with negotiation—underscores the EU’s intent to protect its industries while keeping the door open to de-escalation and cooperation.
Potential implications for EU–USA trade relations
The new tariffs, if enacted, are likely to affect exporters and importers on both sides of the Atlantic. USA producers of consumer goods like peanut butter and motorcycles could face declining sales in the European market, while European policymakers aim to pressure the USA into lifting Trump’s tariffs.
The developments come at a critical juncture, as both blocs prepare for upcoming trade talks amid a shifting geopolitical landscape and growing calls for economic sovereignty on both sides.
