The move comes amid a deadlock in bilateral trade negotiations, raising concerns over a potential large-scale trade war.

On Wednesday, European diplomatic sources said that the EU has drafted detailed plans for retaliatory measures in case a deal with the US cannot be reached. These measures aim to protect the EU's trade interests in response to a series of tariff hikes announced by President Trump in March.

More particularly, the decision to impose an additional 20% tariff on most imports from Europe has prompted the bloc to take action.

While the official implementation of the 20% tariff has been temporarily postponed until July to allow room for negotiations, a baseline 10% tariff remains in effect on goods from all 27 EU member states.

Key European exports such as steel, aluminum, and automobiles are also facing a 25% tariff, severely impacting the European economy.