The European Union is taking formal steps to challenge the United States over its tariff policies, announcing Thursday that it will file a case with the World Trade Organization. The dispute centers around the US’s imposition of tariffs on cars and car parts from the EU, which Brussels sees as a “clear violation of international trade rules.” According to a statement from the European Commission, the bloc will initiate the process by formally requesting consultations with the US through the WTO’s dispute settlement mechanism. The Commission claims that US tariffs have breached WTO rules, vowing to “reinstate” the legitimacy of multilateral trade agreements. “ It is the unequivocal view of the EU that these [US] tariffs blatantly violate fundamental WTO rules,” the Commission stated. “ 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 .” Tariff dispute escalates, EU prepares countermeasures The Trump administration has threatened a 20% reciprocal tariff on all imports from the EU and implemented a 25% tariff on all imported vehicles, directly affecting European automakers. European Trade Commissioner Maros Sefcovic said at a press conference Wednesday that the EU could negotiate for a resolution, but it is preparing for “ any scenario .” In parallel with the WTO filing, the Commission has opened a public consultation on a list of US products that could be hit with countermeasures if talks fail. The targeted goods span industrial and agricultural sectors and are valued at €95 billion ($107.4 billion). The bloc drew up a 200-page list of more than 4,800 US products that could face tariffs, including passenger cars, medical devices, chemicals, plastics, and agricultural products. Bourbon and other American spirits have also reappeared on the list, reportedly after pressure from France and Italy, which had earlier lobbied to exclude them to avoid provoking a stronger response from Trump on their own wine exports. According to Eurostat data, European bloc imports of the targeted goods totaled over €109 billion ($123 billion) in 2024. Among them, aircraft accounted for the largest share at more than €13 billion, followed by automobiles at €7 billion. In addition to retaliatory tariffs, it is weighing restrictions on exports of scrap steel and certain chemical products to the US, which could affect roughly €4.4 billion ($5 billion) in trade. As reported in late April by Cryptopolitan, the union temporarily suspended some of its retaliatory measures introduced earlier in April to give diplomatic efforts a chance. That package targets €21 billion ($24.1 billion) worth of US goods with potential 25% tariffs, affecting sectors like agriculture and textiles. Commission President Ursula von der Leyen reiterated that the bloc prefers diplomacy. “The EU is ready to find 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, ” von der Leyen said in a Thursday statement. EU eases car emission rules to boost domestic industry The European bloc approved an initiative this week that involves loosening emissions regulations to give carmakers flexibility in meeting carbon targets. Under a scheme proposed in March by Commission President von der Leyen, manufacturers will now be able to average vehicle emissions over a three-year period from 2025 to 2027. Previously, companies faced fines if they missed the emissions target in any single year. The change was approved in Strasbourg with a majority of 458 to 101 votes. The European Automobile Manufacturers’ Association (ACEA) said the reform was a “much-needed flexibility” in meeting CO2 targets in their transition toward zero-emission mobility. “ This is incomprehensible. It is yet another step back in the fight against climate change, ” said Bricmont, who represents Belgium. Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do it with DeFi in our upcoming webclass. Save Your Spot
