In brief
Tensions rise as the E.U. targets $107 billion worth of U.S. goods in response to tariffs.
The European Union is gearing up to apply pressure on the United States due to stalled trade negotiations under the Trump administration. On Thursday, the European Commission laid out a strategy that includes targeting $107 billion worth of U.S. products with increased tariffs. This move comes as the E.U. also prepares to initiate a case against the U.S. at the World Trade Organization regarding tariffs on various goods, particularly cars and parts.While the E.U. plans to consult for a month on which U.S. products to hit with higher tariffs, the potential list includes agricultural commodities such as meats and soybeans, alongside items like sewing machines and airplane parts. Ursula von der Leyen, the E.U. Commission president, emphasized the desire for beneficial trade agreements but hinted at preparing for all outcomes.This approach signifies a shift from mere discussions of retaliation to planning for a sustained reevaluation of trade relations with the U.S. The expectation is that if negotiations do not yield favorable results, some tariffs could remain in place for the foreseeable future, as E.U. officials strengthen their stance on trade equity.
