The European Union is preparing to impose sweeping tariffs on U.S. goods-including Boeing aircraft and American-made cars-if trade negotiations with the Trump administration collapse, setting the stage for the first tariff escalation between the two aerospace powers since 2021.
European Trade Commissioner Maros Sefcovic confirmed the EU would unveil countermeasures on Thursday, warning of retaliatory steps if no resolution is reached. "We prepare for all scenarios; all options are on the table," Olof Gill, a spokesperson for the European Commission, said Wednesday. "A negotiated solution remains our clear and preferred outcome."
The proposed tariffs would target roughly $114 billion in American exports, according to Bloomberg and the Financial Times, and include civil aircraft, a direct response to the Trump administration's recent levies on Airbus and a broad range of EU goods. European carriers, including Ryanair and Lufthansa, have hundreds of Boeing jets on order, and a new tariff could significantly raise the cost of delivery.
President Donald Trump last month imposed a 25% tariff on EU cars and metals, and a 10% levy on nearly all other goods, with the rate scheduled to rise to 20% in July if no deal is reached. Officials in Brussels say these measures could eventually impact up to $599 billion in EU exports-97% of total goods sent to the United States.
"Europe is in negotiations, and if these negotiations do not lead to a positive outcome, I imagine that... reciprocal tariffs on aircrafts will be imposed," Airbus CEO Guillaume Faury said in Paris earlier this week. Faury added that the industry should return to a tariff-free regime, warning there could be "only losers" in a renewed trade war.
Faury has previously pointed to the 2020-2021 tariff dispute, during which the U.S. and EU imposed reciprocal duties over aviation subsidies, as an example of how such conflicts can be resolved through negotiation. At the time, both sides eventually agreed to suspend the tariffs, leading to a temporary truce.
Boeing has not publicly commented on the EU's proposal. The company, which exported $35.3 billion in aerospace goods to the EU in 2023, has come under renewed pressure from key European customers.
Ryanair CEO Michael O'Leary warned in a letter to U.S. lawmakers that the airline may cancel its $33 billion Boeing order if tariffs make the jets prohibitively expensive, suggesting that the company would seek to hold Boeing contractually accountable for any additional costs.
Despite this, analysts say cancellations may be limited due to the lack of alternative suppliers. Airbus is sold out through the end of the decade, and many commercial contracts contain strict delivery obligations. Delta Air Lines has already said it would defer deliveries of Airbus aircraft if tariffs persist.
The aerospace industry continues to call for a return to the 1979 WTO agreement that broadly exempts aircraft and parts from duties. Boeing CEO Kelly Ortberg told Congress last month that the planemaker wanted free trade.
The European Commission is expected to circulate the proposed tariff list to member states this week, followed by a 30-day consultation period. The document is also expected to include measures to encourage EU investment in the U.S. and reduce non-tariff trade barriers.
Reuters contributed to this report.
