Topline
The European Union is considering additional tariffs on more than $110 billion in U.S. exports if trade negotiations fall through, Bloomberg reported Tuesday, which could impact several industries, including oil and gas, as talks with the Trump administration appear to have stalled.
The U.S. has replaced Russia as one of Europe’s largest oil and gas exporters in recent years.
The EU will target about €100 billion (roughly $113 billion) in U.S. goods with additional tariffs if trade talks fail to satisfy the bloc, which is expected to discuss the retaliatory levies as early as Wednesday, people familiar with the matter told Bloomberg.
The European Commission, the EU’s executive arm, will reportedly accelerate talks with the U.S. later this week with proposals to lower trade and boost European investments in the U.S.
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Nearly 14% of all goods imported to EU countries last year originated in the U.S., according to European Commission data. It’s unclear which goods would be targeted by new tariffs, however, though the largest U.S. exports to the EU covered several industries in 2024:
Nearly 1 million jobs in the U.S. were supported by trade in services with the EU in 2023, while another 3.4 million are supported by European investment, trade data from the EU suggests. Among the industries receiving the most support from EU trade and investment are aerospace, oil and gas, pharmaceuticals and medicines, medical equipment, vehicles and agriculture.
European Commission President Ursula von der Leyen said the EU will “give negotiations a chance,” though Bloomberg previously reported talks with the U.S. have made little progress as some European negotiators left talks “with little clarity” on Trump’s goals for a deal. Trump, during a meeting with Italian Prime Minister Giorgia Meloni, said, “There will be a trade deal, 100%,” between the U.S. and EU. Meloni, a right-wing Trump ally, said she was “sure” the U.S. and EU could reach an agreement.
Trump announced sweeping tariffs on U.S. trade partners last month, though he has since pared back his levies to include a 10% baseline tariff on most imported goods. Trump administration officials have said more than 75 countries have reached out to the White House to negotiate trade deals, even as details of those talks have yet to be disclosed. Trade deals with Japan and countries surrounding China have been prioritized, NBC News reported, with South Korea and Vietnam as “key priorities.” The Trump administration has promised “90 deals in 90 days,” with some countries and blocs like the EU pausing planned retaliatory tariffs, as negotiations ensue.
EU Eyes €100 Billion Of US Goods With Tariffs If Talks Fail (Bloomberg)