This photograph shows a European flag flying outside the EU headquarters in Brussels on May 6, 2025.
Nicolas Tucat | Afp | Getty Images
The European Union’s executive arm on Thursday said it would launch a dispute with the World Trade Organization over the U.S.’s “reciprocal” tariff policy and duties on cars and car parts.
The European Commission also said it had launched a public consultation on a list of U.S. imports potentially subject to countermeasures. The list covers U.S. imports worth 95 billion euros ($107.4 billion) across a range of industrial and agricultural products.
“It is the unequivocal view of the EU that these [U.S.] tariffs blatantly violate fundamental WTO rules,” the European Commission said in a statement.
“The EU’s objective is thus to reaffirm that internationally agreed rules matter, and these cannot be unilaterally disregarded by any WTO member, including the US.”
The dispute will take the form of formally lodging a request for consultations.
In a press conference on Wednesday, European Trade Commissioner Maros Sefcovic said the EU’s main focus was negotiating a deal to avoid President Donald Trump’s 20% reciprocal tariffs on all U.S. imports from the bloc.
However, Sefcovic added that EU continued to “prepare for any scenario.”
In a Thursday statement, EC President Ursula von der Leyen said: “The EU remains fully committed to finding negotiated outcomes with the US. We believe there are good deals to be made for the benefit of consumers and businesses on both sides of the Atlantic.”
Trump has also slapped a 25% tariff on all imported vehicles, hitting many European automakers.
The EU has paused an initial set of retaliatory measures — a response to U.S. duties of 25% on steel and aluminum — to enable negotiations. The countermeasures, if implemented, will target around 21 billion euros ($24.1 billion) worth of U.S. goods ranging from agricultural products to clothing, chiefly with a tariff rate of 25%.
This is a breaking news story and will be updated shortly.
