EU to place huge tariffs on Boeing jets as retaliation for Trump

The European Union is preparing to slap heavy trade penalties on Boeing aircraft as part of a broader retaliation strategy if current talks with Donald Trump’s White House fail.

Brussels will propose new duties targeting American civilian jets and other major exports, escalating a tariff war that’s already frozen key trade routes. The planned tariffs are part of a long list worth about €100 billion in annual US imports, and will be sent to EU member states for approval.

According to the Financial Times, the European Commission will move ahead with the new aircraft tariffs only if the US refuses to ease existing trade restrictions. 

The EU’s executive body still needs a weighted majority of its 27 countries to back the move before it becomes law. Two officials close to the matter said the list is still being finalized and could be altered slightly before delivery.

Trump’s April tariffs put Boeing in Europe’s crosshairs

Trump introduced the latest round of tariffs on April 2, placing a 20% charge on almost all goods coming from the EU. He adjusted the rate on April 9, reducing it to 10% for 90 days to give negotiators time to progress. But the White House left other tariffs untouched, including the 25% tax on European steel, cars, and aluminum, which are still active.

Brussels made a calculated decision to pause retaliatory tariffs on €21 billion worth of American products until July 14, hoping to give diplomacy a chance. 

The list included Harley-Davidson motorcycles, chicken meat, and textile imports. But officials warned that a fresh batch of penalties—now including Boeing jets and potentially chemical products—will roll out right after the pause ends unless a deal is reached before then.

The European pharmaceutical sector also got a direct warning this week. On Monday, Trump announced that his administration would impose new duties on drug exports from Europe in the next two weeks. 

While most pharma stocks fell on the news, Novo Nordisk, a major Danish company, reported better-than-expected earnings and saw its shares jump by 4.4%. Still, the firm lowered its 2025 outlook, citing weaker demand for its weight-loss drug Wegovy.

The Stoxx 600, Europe’s main stock index, was down 0.67% by mid-afternoon in London. The retail sector dropped 2.3%, leading the losses across the board.

Investors are still watching key earnings reports from companies like BMW, Legrand, Ørsted, Pandora, Veolia, Fresenius, Siemens Healthineers, Skanska B, JD Wetherspoon, Vonovia, Delhaize, and Telecom Italia.