The European Union is preparing a sweeping retaliatory tariff package targeting nearly €100 billion ($113 billion) worth of US goods, as tensions with Washington escalate over President Donald Trump’s trade measures, European diplomats have told AFP.

The move comes in response to the US president’s decision to impose a 20% tariff on a broad range of EU imports, a policy announced last month but temporarily paused for 90 days. That suspension is set to expire in July, leaving EU officials racing to finalise their response if ongoing trade talks fail to prevent the reimposition of the tariffs.

Currently, EU goods entering the US are subject to a baseline tariff of 10%. Still, under the new US policy, most exports from the 27-member bloc could be taxed at significantly higher rates.

According to EU trade chief Maros Sefcovic, as much as 70% of the EU’s exports now face levies ranging between 10% and 25%. He added that US investigations into various sectors, including pharmaceuticals and timber, could expose up to €549 billion—or 97% of total EU exports to the US—to potential new tariffs.

While the European Commission has yet to reveal which American products will be affected, sources indicate that a preliminary list of targeted items is expected to be released on Thursday. The Financial Times reported that US aerospace giant Boeing is among the products likely to be included. The Commission has declined to comment on the report.

Airbus CEO Guillaume Faury suggested that the EU consider imposing reciprocal tariffs on US-made aircraft if negotiations fail. Speaking to AFP, Faury said such measures could pressure the US into earnestly returning to the negotiating table.

The European Commission, which handles trade policy for the bloc, reportedly informed EU member states of the proposed retaliatory package last week. The plan is intended to serve both as a warning and a negotiating tool, reinforcing the EU’s position before further discussions with Washington.