The EU is considering imposing tariffs on US aircraft and car exports as a strategic move to influence Donald Trump to reconsider his current and proposed tariffs against the EU. The potential tariffs would not only impact Boeing significantly but also extend to other US exports like chemicals, electrical equipment, health-related products, and certain foods such as sweet potatoes and nuts.

In response to Trump’s 20% reciprocal tariffs, Brussels has initiated consultations with member states regarding possible litigation against the US. As preparations for a prolonged transatlantic trade dispute continue, Trump’s recent agreement with the UK and a seemingly softened stance on China have added complexity to the trade dynamics.

EU officials are gearing up for various scenarios post-July deadline, emphasizing the need to safeguard against any lasting impact of Trump’s tariffs. The European Commission’s president, Ursula von der Leyen, remains optimistic about potential trade deals while maintaining readiness for all outcomes.

The proposed tariffs come on the heels of the EU’s earlier announcement of retaliatory measures against the US, including taxes on products like Harley-Davidsons and poultry. If implemented, these new tariffs would affect not only Boeing but also Ireland’s pharma exports and companies like Ryanair and Aercap.

While EU officials are not aiming for a direct tit-for-tat response, they are exploring different tariff options, including services, which could target US tech and social media companies. The decision on the exact categories and rates of potential tariffs is expected by early July, setting the stage for potential economic repercussions on both sides of the Atlantic.