The European Union (EU) on the 24th (local time) has completed preparations for implementing retaliatory tariffs in response to the failure of tariff negotiations with the United States.
According to local foreign media, the 27 EU member countries on that day approved a plan for retaliatory tariffs against the U.S., proposed by the executive commission, totaling €93 billion (about 150 trillion won). In the voting, 26 countries supported the plan, excluding Hungary.
The approved retaliatory tariff plan combines the first and second phases of retaliatory measures originally prepared by the executive commission, which were €21 billion and €72 billion, respectively. The core includes additional tariffs on major American products such as aircraft, auto parts, and bourbon whiskey.
The EU plans not to immediately implement the retaliatory measures, but if a deal to reduce the reciprocal tariff rate of 30% promised by U.S. President Donald Trump is not reached by the 1st of next month, it plans to impose retaliatory tariffs according to the approved plan starting on the 7th of the same month.
The vote took place amid expectations that a U.S.-EU trade agreement imposing a 15% tariff on EU products is likely to be reached. According to the Financial Times (FT) and The Wall Street Journal (WSJ), the two sides are in final negotiations over applying a 15% tariff rate to most EU products while exempting certain items such as aircraft and medical devices from tariffs.
Currently, EU products exported to the U.S. are subject to an average existing tariff of 4.8% and a new 'basic tariff' of 10% introduced by President Trump. The executive commission reportedly explained to member states that if an agreement is reached at the 15% level, it would effectively correspond to a 'status quo'. The 15% tariff rate is similar to that established by the U.S. with Japan.
The executive commission has repeatedly maintained that the initial basic tariff of 10% is 'illegal' and cannot be accepted, but is seen as leaning towards selecting 'the lesser evil' in order to avoid a 30% tariff.
Some have criticized the EU for failing to effectively utilize its strong economic power and trade defense measures in negotiations with the United States.
The EU's trade threat response measure (ACI), known as a 'trade bazooka,' allows it to impose restrictions in relation to trade, foreign direct investment, financial markets, public procurement, and intellectual property rights if it deems that a third country poses a trade threat to the EU or its member states. However, it has never been used.
France argued that the ACI should be prepared immediately after Trump announced a letter outlining the 30% tariff, but at the time, Ursula von der Leyen, the commission's president, remarked, 'We are not yet in a position to prepare for the ACI activation.'
Additionally, there are claims that despite the EU undertaking preparations for retaliatory measures from the outset of President Trump's extensive tariff imposition, it repeatedly modified and delayed plans due to disagreements among member states and concerns about provoking the U.S., which ultimately undermined its negotiating power.