EU drafts $84B additional duties on U.S. goods, including Boeing aircraft, U.S. cars, and bourbon - report

The European Union has announced €72 billion ($84 billion) in retaliatory tariffs on American products, targeting key items such as Boeing aircraft, automobiles, and bourbon, in response to proposed U.S. tariff increases.

EU Trade Commissioner Maros Sefcovic described the proposed U.S. tariff rate as "effectively prohibitive," warning it could harm transatlantic trade relations and leading to a comprehensive list of affected goods, though military imports are excluded.

Over €65 billion of the tariffs impact industrial goods, with significant amounts designated for aircraft, machinery, and automobiles, affecting major automakers and a wide range of alcohol-related companies.

Investors can track the European market using various ETFs, while options for monitoring the broader U.S. market are also available for those interested in market dynamics amid the tariff tensions.

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The European Union (EU) has unveiled a new set of retaliatory tariffs totaling €72 billion ($84 billion) on American products. This expansive list includes items such as Boeing aircraft, automobiles, bourbon, and various industrial and agricultural products, according to Bloomberg. This decision is a direct reaction to former President Donald Trump’s tariff threats, particularly the proposal to increase tariffs on EU goods to 30% starting August 1.

EU Trade Commissioner Maros Sefcovic has labeled the proposed tariff rate as “effectively prohibitive,” warning that it could jeopardize transatlantic trade relations. The comprehensive 206-page list, created by the European Commission and viewed by Bloomberg, has been trimmed down from an initial €95 billion following consultations with businesses and EU member states. It notably excludes military imports.

Over €65 billion of the goods listed falls under industrial categories, comprising approximately €11 billion in aircraft, more than €9.4 billion in machinery, and €8 billion in automobiles. Additionally, €6 billion is allocated to agri-food products. The package also encompasses precision equipment, toys, hobby gear, sporting firearms, and musical instruments.

Prominent automakers affected by these tariffs include General Motors, Ford, Stellantis, Tesla, Rivian, Volkswagen, Toyota, and Honda. The list of impacted alcohol-related stocks is extensive, featuring companies such as Brown-Forman, Heineken N.V., Anheuser-Busch InBev, Molson Coors, Boston Beer, Diageo, MGP Ingredients, and others.

For those interested in tracking the European market, several exchange-traded funds (ETFs) are available, including EWG, GF, EWI, EWQ, FGM, DAX, FLGR, FXB, EWU, FKU, EWUS, FLGB, and GREK. Likewise, the broader U.S. market can be monitored using ETFs like SPY, VOO, IVV, RSP, SSO, UPRO, SH, SDS, and SPXU.

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