The European Commission has taken two additional steps in response to potential tariffs by the US as it negotiates a possible trade deal with the US. This week (May 7, 2025), the European Commission launched a public consultation, effective until June 10, 2025, on a list of US imports, valued at EUR 95 billion ($107 billion), which could become subject to EU countermeasures, if ongoing EU-US trade negotiations do not result in a mutually beneficial outcome and the removal of US tariffs.

In addition, the EU said it plans to launch a dispute under the World Trade Organization (WTO) against the US on proposed US-imposed reciprocal tariffs as well as recently US-imposed tariffs on cars and car parts by formally lodging a request for consultations with the WTO that such tariffs violate WTO rules.  

“Tariffs are already having a negative impact on the global economies,” said Ursula von der Leyen, President of the European Commission, in a May 7, 2025, statement. “The EU remains fully committed to finding 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. At the same time, we continue preparing for all possibilities, and the consultation launched today [May 7, 2025] will help guide us in this necessary work.”

With recent changes to US trade policy, the EU, along with all other countries, are newly subject to a 10% baseline tariff. The US also imposed a tariff of 25% on all imports of vehicles and car parts from the EU, which were in addition to 25% tariffs on imports of steel, aluminum, and derivative products. Also pending are proposed reciprocal tariffs against the EU and other countries intended to address trade imbalances between the US and other countries. For the EU, these proposed reciprocal tariffs, which were first announced in early April (April 2025), would be 20%, and are now on pause until July 9, 2025, until the EU and other trading partners negotiate possible trade deals with the US. Also under consideration by the US are possible pharmaceutical industry-specific tariffs.

“The EU continues to prepare potential countermeasures to defend its consumers and industry, in parallel with the negotiations and in case these fail to deliver a satisfactory outcome,” said the European Commission in its May 7, 2025, statement. “While the public consultation is a necessary step in this process, it does not automatically result in the adoption of countermeasures.”

In addition, the European Commission says it continues to carefully monitor the potential diversion of global exports onto the EU market, which might be caused by the US tariffs imposed on third countries (I.e., non-EU countries). In addition, the Commission said it will continue to pursue negotiations with other trading partners to find new export outlets, diversify its sources of supply, and continue ongoing work to reduce barriers and strengthen the EU’s single-market system.

$500-M-Plus in new EU R&D funding
Separately, the EU is moving forward with measures to boost EU competitiveness in science and innovation. Horizon Europe is the EU’s flagship research and innovation funding program with a budget of EUR 95.5 billion ($107.2 billion) for 2021-2027, and earlier this month (May 2025), the European Commission’s President von der Leyen outlined key elements of plan to further incentivize scientific research in the EU. This includes a new additional funding package of EUR 500 million ($561 million) for 2025–2027. Von der Leyen outlined the plan at the Choose Europe for Science conference held earlier this month (May 2025) at the Sorbonne University in Paris.

The EU is also proposing a first-ever European Innovation Act and a Startup and Scaleup Strategy to remove regulatory and other barriers to innovation and to facilitate access to venture capital for innovative European start-ups and scale-ups. The plan also calls for establishing a new seven-year “super grant” to support longer-term research under the European Research Council (ERC), a government body responsible for funding scientific and technological research conducted in the EU. This includes allocating additional funding available for grantees relocating to Europe from the US or elsewhere in the world.

In addition, the EU is proposing new legislation, the European Research Area (ERA) Act, to support academic and scientific freedom. ERA aims to create a unified research and innovation market by aligning national and EU policies, improving research infrastructures, and promoting open science and international collaboration. “Because as threats rise across the world, Europe will not compromise on its principles, said von der Leyen, in her comments on May 4, 2025, at the Choose Europe for Science event. “Europe must remain the home of academic and scientific freedom.”

The EU is also increasing support to early-career scientists through a pilot program to provide higher allowances and longer contracts with increased support over the next two years, with targeted incentives in frontier fields, such as AI. The European Commission has set of a goal, in concert with its member states, to reach a target of 3% of gross domestic product for R&D investment by 2030, which will include future proposals on research and innovation funding in the EU’s next long-term budget.

Source: European Commission (tariffs) and European Commission (scientific research)