The move confirms a tit-for-tat dispute that could escalate into a full trade war, particularly if US President Donald Trump carries out his threat to penalise European cars.

The Commission formally adopted a law putting in place the duties on 2.8 billion euros (RM12.9 billion) worth of U.S. goods, including steel and aluminium products, farm produce such as corn and peanuts, bourbon, jeans, and motorcycles.

“We do not want to be in this position,” EU Trade Commissioner Cecilia Malmstrom said in a statement, adding that the “unilateral and unjustified” US decision had left the EU with no choice.

She called the EU response proportionate and in line with World Trade Organization rules and said that they would be removed if Washington removed its metal tariffs. EU steel and aluminium exports now facing US tariffs are worth a total of 6.4 billion euros (RM29.6 billion).

Trump hit the EU, Canada, and Mexico with tariffs of 25% on steel and 10% on aluminium at the start of June, ending exemptions that had been in place since March.

Canada has announced it will impose retaliatory tariffs on C$16.6 billion (RM50 billion) worth of US exports from July 1. Mexico imposed tariffs on American products ranging from steel to pork and bourbon two weeks ago.

Some of the products chosen are designed to target the states controlled by Republicans, who are seeking to retain control of both chambers of Congress in November elections.

The EU also has in reserve potential tariffs of 10% to 50% that it could impose on a further 3.6 billion euros (RM16.6 billion) of US imports in three years’ time.