Brussels, May 8, 2025 – The European Union announced plans to formally dispute the United States' recent tariff measures at the World Trade Organization (WTO), escalating tensions over trade policy. The conflict stems from U.S. tariffs on cars and auto parts imported from the EU—measures the European Commission calls a “clear violation of international trade rules.”
In a statement released Thursday, the Commission said it will launch the WTO's dispute settlement process by requesting consultations with the U.S. The EU aims to reaffirm the importance of multilateral trade agreements and the role of the WTO. “These [U.S.] tariffs blatantly violate fundamental WTO rules,” the Commission said, adding that no member, including the U.S., can act unilaterally.
Tariff Tensions Rise
The move follows the U.S. administration's recent imposition of a 25% tariff on all imported vehicles and a threat to introduce a 20% tariff on all EU imports. European Trade Commissioner Maros Sefcovic said the bloc is open to negotiations but is preparing for “any scenario.”
As a countermeasure, the EU has initiated a public consultation on potential tariffs targeting U.S. goods worth €95 billion ($107.4 billion). The proposed 200-page list includes over 4,800 items from sectors such as automotive, chemicals, agriculture, and medical equipment. American spirits, including bourbon, also appear on the list—added back after lobbying by France and Italy.
Eurostat reports that in 2024, the EU imported over €109 billion ($123 billion) worth of these U.S. goods. Aircraft alone accounted for more than €13 billion, followed by €7 billion in automobiles.
Additional measures under consideration include restricting exports of scrap steel and specific chemicals to the U.S., affecting around €4.4 billion ($5 billion) in trade. The EU had temporarily paused some earlier retaliatory actions in late April to allow for diplomatic negotiations. That suspended package covered €21 billion ($24.1 billion) in goods.
European Commission President Ursula von der Leyen emphasized that diplomacy remains the preferred path. “We are ready to find negotiated outcomes with the U.S.,” she said. “There are good deals to be made for both consumers and businesses.”
EU Relaxes Car Emission Rules to Support Industry
In a separate move, the EU this week approved a relaxation of vehicle emissions rules to help domestic automakers. Under the new regulation, companies can average their vehicle emissions over three years (2025–2027), rather than meet targets annually. The reform passed in the European Parliament with 458 votes in favor and 101 against.
The European Automobile Manufacturers’ Association (ACEA) welcomed the move, calling it essential for the industry’s transition to zero-emission mobility. However, critics like Belgian MEP Bricmont said the decision undermines climate goals, calling it “incomprehensible.”