EU Weighs Retaliatory Tariffs Against US: Aircraft, Automobiles, and Whiskey Top the List

Retaliatory Move Against Trump's "Greenland Tariffs"
Aircraft Sector, Highly Dependent on EU, Faces Major Impact
Motorcycles, Soybeans, and Beer Also Likely to Be Hit with Tariffs

Amid the United States' plan to impose the so-called "Greenland tariffs" on eight European countries, there is growing attention on which items the European Union (EU) may target with retaliatory tariffs.

Reuters Yonhap News

According to the Wall Street Journal (WSJ) on January 20 (local time), if the EU moves forward with countermeasures, it is expected that approximately $100 billion worth of U.S. exports to the EU will be affected. The WSJ reported that not only major export items such as aircraft, automobiles, whiskey, and soybeans, but also niche products like jukeboxes and umbrellas, are likely to be included in the tariff list.

In particular, the U.S. aviation sector is expected to be hit hard. American aircraft manufacturers, including Boeing, are highly dependent on the EU market. As of 2024, the value of U.S. aircraft exports to the EU amounts to $12.8 billion. If a 30% tariff is imposed on aircraft, the impact on Boeing is expected to be significant.

Last year, Boeing delivered 73 aircraft-about 12% of its total deliveries-to airlines and aircraft leasing companies based in the EU. Currently, about 700 aircraft are scheduled for future delivery to the EU. In 2024, Boeing's European division recorded $8.7 billion in revenue, accounting for about 13% of its total sales, although this figure includes some sales to non-European countries.

U.S.-made automobiles will also face a 25% tariff if the EU's retaliatory measures are implemented. However, the biggest impact is expected to fall on German companies rather than American firms. This is because BMW and Mercedes-Benz export large volumes of vehicles produced at their U.S. plants to Europe.

BMW, which accounts for the largest share of U.S. automobile exports to the EU, manufactures hundreds of thousands of sport utility vehicles (SUVs) annually at its Spartanburg plant in South Carolina, with a significant portion exported to Europe. Mercedes-Benz also supplies vehicles produced at its Alabama plant to markets worldwide, including Europe.

Additionally, U.S.-made motorcycles will be subject to a 25% tariff. Harley-Davidson operates factories in Pennsylvania and Wisconsin. A 30% tariff is expected to be imposed on American whiskey, and other U.S. alcoholic beverages such as wine and beer are also set to be included in the retaliatory tariffs. American soybeans are expected to face a 25% tariff.

This move by Europe to impose counter-tariffs stems from U.S. President Donald Trump's "Greenland tariffs." President Trump has threatened to impose a 10% tariff starting February 1 on eight European countries-Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland-that opposed the U.S. plan to annex Greenland, with a further increase to 25% scheduled for June.

The EU is expected to make a final decision on whether to implement retaliatory tariffs and which specific items to target after observing whether the U.S. actually enforces the Greenland tariffs on February 1.