TEMPO.CO, Jakarta - The European Union (EU) has proposed a new round of retaliatory tariffs on the United States, targeting key sectors such as aviation, motor vehicles, and agricultural goods, including Bourbon whiskey. As reported by Politico, this action is in response to recent U.S. tariffs.
On Monday, European Commission Executive Vice-President for Trade and Economic Security, Maros Sefcovic, announced that the Commission had submitted its proposal to EU member states for a second package of counter-measures. These tariffs could be implemented in early August if a resolution is not reached with Washington.
This second package of tariffs is reported to cover a total of €72 billion in U.S. products, or around Rp1.370 trillion. Industrial goods account for the majority of the list at €65.7 billion, with agricultural products making up the remaining €6.4 billion.
The list notably includes Bourbon whiskey, despite intensive lobbying from France and Ireland to protect the beverage sector.
The largest single category on the 200-page list is aircraft and their spare parts, valued at almost €11 billion, which could potentially represent a heavy blow to U.S. aircraft manufacturer Boeing.
Other targeted sectors include machinery, cars and their spare parts, chemicals, plastics, medical devices and equipment, electrical equipment, and various industrial goods.
This proposed package is a scaled-down version of a previous one that was reported to impact U.S. goods valued at €95 billion.
According to a document presented to EU member states, the Commission’s targeting of U.S. products is based on several criteria.
First, there is a "need to rebalance/level the playing field in light of the U.S. tariffs affecting EU exports to the U.S." Second, the document considers whether "availability of alternative sources of supply from outside or inside the EU." Finally, it includes "products where the risk of relocation is high."
EU member states must officially approve these measures before they can be enacted. A formal vote has yet to take place, although trade ministers of the bloc met on Monday and expressed support for the Commission's negotiation strategy.
The European Union is attempting to strike a careful balance, seeking both a resolution and a strong response to the latest tariff threats from the Trump administration.
The EU has already postponed the first round of such measures, which covered €21 billion in U.S. goods, until August 6 to allow time for trade negotiations.
European Commission President Ursula von der Leyen stated over the weekend that while the EU will continue talks with Washington, it is fully prepared to take retaliatory action.
As widely reported, U.S. President Donald Trump's announcement on July 12 that he would impose a 30 percent tariff on European imports starting August 1, in addition to existing sectoral tariffs.
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