European Commission Initiates Consultation on New Retaliation in Response to US Tariffs
Introduction
On 8 May 2025 the European Commission announced a consultation on potential countermeasures in response to recent US tariffs on EU products. This development is part of ongoing trade tensions between the EU and the United States, with existing EU retaliatory measures currently suspended until 14 July 2025. This Legal Update provides an overview of the proposed measures and their connection to existing retaliatory tariffs.
Newly Contemplated Measures
The European Commission is consulting stakeholders on possible commercial policy measures, likely tariffs or trade restrictions, in response to the new US tariffs. The consultation, accessible via the EU Survey, is governed by Regulation (EU) No 654/2014 and aims to gather input on affected products.
Product Lists
The consultation includes two lists of products:
1. US Imports to the European Union: Products that could face EU countermeasures, covering:
- Live animals (e.g., horses, cattle, poultry)
- Meat and edible offal (e.g., bovine, swine, poultry)
- Fish and aquatic invertebrates (e.g., salmon, shrimp)
- Dairy, eggs, and animal products
- Vegetables, fruits, and nuts
- Cereals, flours, and starches
- Oils and fats
- Prepared foods and beverages (e.g., wines, spirits)
- Other products (e.g., tobacco, coal)
2. EU Exports to the United States: Products potentially subject to US tariffs, including:
- Ferrous waste and scrap (CN 7204)
- Aluminium waste and scrap (CN 7602)
- Toluidines and derivatives; salts thereof (CN 2921 43)
- Odoriferous substances for food/drink industries (CN 3302 10)
- Enzymes (CN 3507 90)
These lists are provided for informational purposes and are subject to change based on consultation outcomes.
Table: Summary of Affected Products
| CATEGORY | EU EXPORTS TO US | US IMPORTS TO EU |
|---|---|---|
| Metals and Scrap | Ferrous and aluminum waste | - |
| Chemicals | Toluidines, odoriferous substances, enzymes | - |
| Agricultural Products | - | Live animals, meat, fish, dairy, vegetables |
| Processed Foods/Beverages | - | Prepared foods, beverages |
| Other | - | Tobacco, coal, vegetable materials |
Background on EU-US Trade Tensions and Connection to Existing Retaliatory Measures
The consultation follows recent trade tensions between the European Union and the United States, and in particular the US tariffs on EU steel and aluminum imposed under Section 232 of the Trade Expansion Act of 1962. In response, the European Union implemented retaliatory tariffs on US goods, covering approximately €21 billion in exports, including products like soybeans, copper, and motorcycles. These measures were suspended until 14 July 2025, following a 90-day pause in US tariffs announced in April, to facilitate negotiations.
The new consultation announced on 8 May addresses additional US tariffs, potentially the “reciprocal tariffs” of 20% on EU goods announced earlier in 2025, which may affect a broader range of products.
Implications for Businesses
Businesses engaged in EU-US trade should take the following steps:
- Review Product Lists: Assess whether your products are included in the consultation lists to anticipate potential tariffs or restrictions.
- Participate in Consultation: Submit feedback via the EU Survey to influence the final measures.
- Monitor Negotiations: Stay updated on US-EU trade talks, as they will determine the fate of both new and existing measures.
- Plan for Contingencies: Prepare for potential trade disruptions if tariffs are imposed, or if the suspension expires without an agreement.
Next Steps
The consultation is open until 10 June 2025, and stakeholders are encouraged to provide input to shape the European Union’s response.
Mayer Brown's International Trade practice has significant experience in the fields of trade and customs legislation, and is well-placed to assist companies with navigating the increasing complexities of the global trade landscape.
