Background

On 8 May 2025, the European Commission published a new preliminary list of products originating in the United States that may become subject to retaliatory tariffs should ongoing negotiations between the European Union and the United States fail and U.S. tariffs remain in force.

The Commission has launched a public consultation process pursuant to Regulation (EU) No 654/2014, seeking inputs from stakeholders regarding this preliminary list. Following consultations, the Commission will update the list of products and subsequently submit it to EU members states for adoption by qualified majority. These potential retaliatory tariffs are intended to respond to the United States' so-called "reciprocal" tariffs and those applied to automobiles and automobile parts.

This development comes shortly after the United States concluded a bilateral agreement with the United Kingdom on 8 May 2025, marking the first trade deal since the Trump administration imposed universal tariffs earlier this year.

The European Union has also announced that it will initiate a dispute against the United States before the World Trade Organization (WTO).

Key points:

• This is an opportunity to argue for exclusions or additions to the list, or otherwise provide feedback to the Commission regarding its proposed course of action.
• Interested parties must submit comments via the Commission's online survey by 12:00 PM (noon) CET on 10 June 2025.
• These potential actions are separate from the EU's March 2025 measures related to U.S. steel and aluminium tariffs, which remain subject to a negotiation period.

Scope of potential countermeasures

The preliminary list published by the Commission encompasses US goods valued at approximately €95 billion (US$107.2 billion), covering a wide range of industrial and agricultural products. According to Commission statements, the list includes:

• Agricultural and food products worth €6.4 billion, including bourbon whiskey and wine

• Fisheries products valued at €500 million

• Aircraft and vehicle components, potentially affecting major US manufacturers6

Additionally, the Commission is exploring potential restrictions on certain EU exports to the United States, specifically focusing on steel scrap and chemical products with an estimated value of €4.4 billion.

These proposed countermeasures would be separate from and in addition to the previously announced retaliatory measures related to US steel and aluminum tariffs, which the EU delayed implementing for 90 days in April 2025 to facilitate negotiations.

Public consultation process

The public consultation invites input from "anyone who is affected by the United States' measures and by the possible EU countermeasures". Interested parties can submit their views via an online survey until 10 June 2025, 12:00 CET.

In determining the final list of products subject to retaliatory measures, the Commission has indicated it will apply the following criteria:

1. Effectiveness in inducing US compliance with international trade rules

2. Potential to provide relief to affected EU economic operators

3. Availability of alternative supply sources to minimize negative impacts on EU downstream industries and consumers

4. Avoidance of disproportionate administrative complexity and costs

Following the consultation period, the Commission will request EU member states to approve the updated list of countermeasures by qualified majority.

Parallel WTO litigation

In parallel with the consultation, the European Commission has announced its intention to initiate formal dispute settlement proceedings at the WTO against the United States. The dispute will challenge both the universal "reciprocal" tariffs imposed by the Trump administration and the specific duties on cars and auto parts.

The Commission has stated that "it is the unequivocal view of the EU that these tariffs blatantly violate fundamental WTO rules". This would constitute the third WTO challenge against the US "reciprocal" tariffs, following similar actions by Canada in March and China in April 2025.

Implications for businesses

The EU's dual-track approach-combining potential retaliatory measures with WTO dispute proceedings-represents a significant escalation in the transatlantic trade tensions. Businesses engaged in US-EU trade should carefully evaluate their exposure to both the existing US tariffs and potential EU countermeasures.

The consultation period offers a crucial opportunity for affected parties to advocate for the exclusion of specific products from the preliminary list or to provide other relevant input to the Commission's decision-making process.

De Minimis Law has substantial experience advising clients on tariffs and national security issues arising under the second Trump administration. For tailored assistance in preparing submissions to the European Commission or addressing any related legal query, contact our office.

Disclaimer:

This alert is intended only as a high-level summary of recent developments and is not a substitute for specific legal advice.