Trump’s tariff expansion could hit EU goods by another €170 billion

The European Union expects the Trump administration’s trade investigations to increase the total volume of the bloc’s goods subject to US tariffs to €549 billion, Bloomberg reports.

The United States has said it may impose tariffs on imports of lumber, pharmaceuticals, semiconductors, critical minerals and trucks, which would result in an additional €170 billion in losses for EU goods.

“These import duties are unjustified and cause economic damage on both sides of the Atlantic,” said European Commissioner for Trade Maroš Šefčovič in his speech to the European Parliament.

According to him, this situation is unacceptable, and the EU cannot afford to remain inactive.

Currently, the EU is facing 25 percent US import tariffs on steel, aluminum, and automobiles, as well as 10 percent duties on almost all other goods. Currently, these tariffs cover 70% of the bloc’s trade in goods with the United States, and after further investigations, this figure could rise to 97%.

Šefčović is in talks with the Trump administration. He is expected to present a document to the US this week in an attempt to start negotiations. The bloc’s proposals are expected to include lowering trade and non-tariff barriers, purchasing more American goods, increasing European investment in the United States, and cooperating on strategic challenges, such as fighting unfair competition.

In case the talks fail, Šefčovič said, the EU is also preparing additional retaliatory measures to restore the balance in trade relations.

In addition, he said that the European Commission is monitoring the possible risks of trade diversion due to US tariffs through a specially created import surveillance working group. The first results of this work are expected in mid-May.

As GMK Center reported earlier, on April 9, Donald announced a complete pause for 90 days on all “reciprocal” duties for trading partners, except for China. In response, the EU postponed its countermeasures for the same period.