Commission consults on possible countermeasures and readies WTO litigation in response to US tariffs

(Credit: Unsplash)

This article is brought to you in association with the European Commission.


The European Commission has launched a public consultation on a list of US imports which could become subject to EU countermeasures, if ongoing EU-US negotiations do not result in a mutually beneficial outcome and the removal of the US tariffs.

The list put to consultation concerns imports from the US worth €95 billion, covering a broad range of industrial and agricultural products. The Commission is also consulting on possible restrictions on certain EU exports of steel scrap and chemical products to the US worth €4.4 billion. This consultation is designed to address both the US universal tariffs and the tariffs on cars and car parts.

Since the US imposed its unjustified and harmful tariffs, the EU has prioritised finding a mutually beneficial and balanced solution through negotiations, including within the framework of the 90-day partial suspension of tariffs announced by the US. These negotiations are ongoing both at political and technical level. The EU continues to prepare potential countermeasures to defend its consumers and industry, in parallel with the negotiations and in case these fail to deliver a satisfactory outcome. While the public consultation is a necessary step in this process, it does not automatically result in the adoption of countermeasures.

In parallel, the EU will also launch a WTO dispute against the US on itsuniversal so-called “reciprocal” tariffs and tariffs on cars and car parts, by formally lodging a request for consultations. It is the unequivocal view of the EU that these tariffs blatantly violate fundamental WTO rules. The EU’s objective is thus to reaffirm that internationally agreed rules matter, and these cannot be unilaterally disregarded by any WTO member, including the US.

Finally, the Commission continues to carefully monitor the potential diversion of global exports onto the EU market, which might be caused by the US tariffs imposed on third countries. In addition, the Commission will continue to pursue negotiations with other trading partners to find new export outlets and diversify our sources of supply. We will also continue ongoing work to reduce barriers and strengthen the EU’s Single Market.

Commission President Ursula von der Leyen, said: “Tariffs are already having a negative impact on the global economies. The EU remains fully committed to finding negotiated outcomes with the US. We believe there are good deals to be made for the benefit of consumers and businesses on both sides of the Atlantic. At the same time, we continue preparing for all possibilities, and the consultation launched today will help guide us in this necessary work”.

Next steps

The Commission will act under the EU’s Enforcement Regulation, considering the US measures to be safeguard measures. As the first step in this process, anyone affected by potential rebalancing measures currently being considered by the EU is invited to submit their views during four weeks, including on the impact of the US tariffs. Consequently, the consultation will remain open until 10 June.

On the basis of the collected input, the Commission will finalise its proposal for the adoption of countermeasures, and consult Member States under the so-called comitology process. Once this process is completed, the Commission aims to have the legal act imposing the countermeasures ready to use in case negotiations with the US do not produce a satisfactory result.

In parallel, once the EU formally submits its request for WTO consultations soon, the two parties will have up to two months to find a mutually agreed solution. If the consultations fail, the EU will be able to request the establishment of a panel, which will assess the merits of the case.

Background

On 2 April, President Trump announced the introduction of so-called “reciprocal” tariffs, which for EU goods were set at 20%. The US also imposed a tariff of 25% on all imports of vehicles and car parts.

These were announced in addition to the 25% tariffs on imports of steel, aluminium, and derivative products the US put forward on 10 February 2025.

President von der Leyen responded by announcing the preparation of EU countermeasures against the US, if negotiations to remove these tariffs should fail.

On 9 April, the US announced a 90-day pause of the EU-specific 20% tariff, leaving in force a 10% tariff. In response, on 14 April, the EU paused for 90 days a series of planned countermeasures against US tariffs on EU steel and aluminium imports to allow space for negotiations.

Currently, €379 billion of EU exports to the US (or 70% of EU exports to the US) are subject to new tariffs (including tariffs put on pause) since the new US administration took office. Already, the US tariffs are raising costs for business, stifling growth, fuelling inflation and heightening economic uncertainty.


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