Motorcycles, whiskey and T-shirt are among the products that could be affected by EU taxes if the US imposes duties on imports of steel and aluminum.
The EU has drawn up a target list of 100 US goods for a value of â‚¬2.8 bn ($3.5 bn, Â£2.5 billion), the BBC understands.
The list, which also includes cosmetic, agricultural and industrial products, is distributed to the 28 member states of the EU governments on Monday.
EU commissioners are expected to discuss the proposals on Wednesday.
The EU list includes:
Bourbon whiskey, orange juice
Corn and other agricultural products
Steel and industrial products
Cosmetics, consumer products, motorcycles and boats
Many of the products, the EU has in the viewfinder are specially designed to have the maximum political effect. Bourbon whisky is produced in Kentucky, the state Senate majority leader Mitch McConnell.
Orange juice is a key export for Florida, a swing state in U.S. elections.Kamal Ahmed: Why Trump is playing hard on the trade
Several companies such as Levi Strauss has already come out strongly against trade barriers. On Monday, he said: “Unilateral tariff impositions on the risk of retaliation and destabilize the global economy, in which case, the American brands, employees and consumers ultimately suffer.” What is the EU mean?
On Monday, the EU Commissioner for Trade, Cecilia MalmstrÃ¶m, told the BBC: “We are looking for possibility to react, which means that we’re going to put taxes or duties on imports into the European Union.”
He said that if the UNITED states went ahead and European taxes, the steel, the EU would be a problem for the World Trade Organization (WTO).
Ms MalmstrÃ¶m stressed that Europe is in search of answer “to take revenge, but do not degenerate”.
But the President, Trump has already threatened more retaliation. On Saturday, she tweeted: “If the EU wants to further increase their already huge tariffs and barriers on us companies to do business there, we simply apply a Tax on their Cars, who have pay in the US.”
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Steel prices: What impact will they really have?
What Trump wants to do and why?
Mr Trump has denounced the “$800 Billion Annual Trade Deficit because of our “very stupid” trade agreements and policies, and has promised to put to an end.
On Thursday, he said that steel imports would face a 25% aluminum and 10%.
Then came Saturday, the threat of EU cars.
The end of the Twitter post by @realDonaldTrump
In the month of January, had already announced duties on solar panels and a washing machine. What are WE business partners of the realization of this?
Downing Street said that while the Lady May recall the President Trump on Sunday, has re-launched “our deep concern about the President’s upcoming announcement on aluminium and steel prices, noting that multilateral action was the only way to solve the problem of excess global capacity in all parts of interest”.
Zhang Yesui, a spokesman for the China National People’s Congress, said that it was natural that “a little friction exists” between the US and China, given the volume of trade between them exceeded $580bn (Â£420bn) over the last year.
But he said China should take “the necessary measures” if its interests were hurt.
Canada said that the rates would cause disruption on both sides of the border. The prime Minister Justin Trudeau said, “I’m confident that we will continue to be able to defend the Canadian industry”.
Brazil, Mexico, and Japan, which have said they will consider retaliatory steps if the president continues with his plan.Has Trump got political support at home for a trade war?
A number of Republicans have questioned the wisdom of the tariff proposal and have been urging the president to reconsider.
US Speaker of the house Paul Ryan, said he was “extremely worried” about the impact of a trade war, adding that it may undermine economic benefits.
Senator Orrin Hatch’s American citizens would be made to pay, while Senator Ben Sasse stated that “kooky 18th Century, the protectionism jack up prices for American families”.
Jason Furman, former chairman of the Council of Economic Advisers for President Obama, told the BBC the proposed tariffs were “very expensive and inefficient way to help a small number of people”.
“This could be a bad or terrible, there is the scenario where it is good,” he added.
Industry bodies such as, for example, the Motor and Equipment Manufacturers Association have expressed deep concern.
But steelworkers in Pennsylvania and Indiana will welcome Mr Trump’s comments.Is there room for compromise?
President Trump hinted Monday that if the UNITED states has reached a better agreement for itself and the more recent north american Free Trade Agreement (Nafta), has abandoned plans for a fare to Canada and Mexico, imports of steel.
The end of Twitter post 2 @realDonaldTrump
The rest of the tweet is a reference point for Canada and the farmers of the UNITED states.
Substantive changes to the Nafta, the agreement is not likely to happen soon, though. The turn of the Nafta talks, about the update of the 24-year-old treaty, ended Monday with little progress. Is trump right about the trade imbalance?
Imports of steel from more than 100 nations and leads to four times more steel from abroad than to export.
Since 2000, the US steel industry has suffered, with the production of to fall and the number of employees working in the steel fall.
The UNITED states is the largest export market for EU cars – which constitute 25% of the â‚¬192bn (Â£171bn; $237bn) worth of motor vehicles, the block is exported in 2016 (China was second with 16%).