Tensions between the United States and European Union are escalating—again. On May 7, the European Commission launched a public consultation on potential retaliatory tariffs targeting a wide swath of U.S. goods. This move comes amid stalled negotiations to resolve newly imposed U.S. duties, including a 20% tariff on EU products and 25% on vehicle imports.

The Stakes: €95 Billion in U.S. Goods at Risk

The EU is assessing countermeasures on approximately €95 billion worth of U.S. industrial and agricultural imports. At the same time, it’s considering restricting €4.4 billion in EU exports to the U.S., including steel scrap and chemical products.

The consultation is open through June 10, and while no tariffs are guaranteed, the Commission is clearly laying the groundwork should talks fall short. And with a formal WTO dispute process now initiated, global trade uncertainty is far from over.

Key Implications for U.S. Exporters & EU Importers

Here’s what companies on both sides of the Atlantic should prepare for:

• More Tariff Layers: Current U.S. tariffs already affect over 70% of EU exports, valued at €379 billion. If countermeasures are adopted, the transatlantic shipping landscape may shift again.
• Auto Sector in the Crosshairs: The U.S. 25% duty on EU cars and car parts is especially disruptive for supply chains dependent on just-in-time manufacturing and cross-border component sourcing.
• Agriculture, Steel & Chemicals Impacted: From food exports to industrial inputs, many sectors are at risk of new tariffs and delays.
• Diversion Risks: The EU is also monitoring global redirection of exports, meaning U.S. exporters could face indirect pressures via competition and market saturation in other regions.

What GLC Recommends

At GLC, we understand that every tariff shift has ripple effects on procurement, routing, and delivery timelines. As the EU consults stakeholders and continues WTO proceedings, our role is to keep you one step ahead.

Here’s how we support our clients through uncertainty:

• Customs Brokerage Expertise: We are current with regulatory changes to ensure compliance across borders.
• Flexible Warehousing Options: Strategic locations across the U.S. give your inventory breathing room as you adjust sourcing or shipping strategies.
• Freight Forwarding Agility: We help reroute goods, identify lower-cost lanes, and reduce exposure to risk-heavy corridors.
• Supply Chain Consulting: Our experts work with you to mitigate cost volatility and identify alternate trade partners or entry points.

What Comes Next?

If negotiations break down, the EU could formally adopt countermeasures by mid-summer. Until then, both parties have two months under WTO rules to find a negotiated solution.

For shippers and importers, now is the time to evaluate your risk exposure, assess supply chain flexibility, and prepare contingency plans.