EU states approve US retaliatory tariffs worth 93 billion euros

On Thursday, EU member states voted overwhelmingly in favor of imposing retaliatory tariffs on US goods worth €93 billion. Brussels hopes to reduce the flat-rate tariff threatened by Washington from 30 percent to 15 percent.

All EU member states except Hungary voted in favor of the list presented by the EU Commission, which affects a wide range of American products—including aircraft, cars, wine, and medical and electrical equipment. The tariffs are scheduled to take effect on August 7 if no agreement is reached with the US by then.

The €93 billion list consists of two previously separate packages of measures that Brussels combined on Wednesday to make the US countermeasures "clearer, simpler, and stronger." The EU aims to reach an agreement with Washington before Trump's 30 percent tariff comes into force on August 1.

The US president has already imposed tariffs of 50 percent on steel and aluminum, 25 percent on cars and car parts, and a general tariff of 10 percent, currently affecting goods worth €370 billion—about 70 percent of EU exports to the US. Brussels has not yet responded to these measures.

Thursday's vote also comes amid growing expectations that the EU could reach an agreement modeled on the recent agreement between Washington and Japan. The deal maintained a base tariff of 15 percent but reduced the US auto tariff for Japanese manufacturers to 15 percent, while maintaining the 50 percent tariffs on metal products.

EU diplomats assume that the 15 percent base tariff also includes the previous average tariff of 4.8 percent on EU goods before Trump's return to the White House in January—effectively cementing the status quo. Trump's 10 percent flat-rate tariff would then be added on top.

In addition to the €93 billion package, the Commission is also preparing a separate list targeting US services, a senior Commission official told members of the European Parliament last week.

A person familiar with the matter said that this package – also only in the event of a breakdown in the talks – would include export controls and restrictions on American companies' access to public contracts in Europe.

(mm,jl)