The European Commission has reportedly proposed tariffs of 25 percent on imports of U.S. steel, clothing and other industrial goods in retaliation to President Donald Trump's proposed tariffs on steel and aluminum.
The executive arm of the European Union reportedly plans to target $3.5 billion of goods imported from the U.S., including T-shirts, whisky, motorcycles and ladders, if Trump decides to implement international duties on steel and aluminum.
The list of goods was revealed in a report by Bloomberg on Tuesday, which cited a draft list drawn up by the commission. According to the report, the commission discussed the retaliatory levy on U.S. goods with representatives of EU governments on Monday evening.
A spokesperson for the European Commission declined to comment, and said that a list is being prepared but is not yet public.
America is home to iconic motorcycle brand Harley Davidson and clothing firm Levi Strauss & Co. It is also home to steel titan Nucor, whose CEO told CNBC last week that the president's proposal was about treating Europe "exactly as they treat us."
Last week, Trump announced tariffs of 25 percent on imports of steel and 10 percent for aluminum imports. The president is unhappy with what he perceives to be imbalanced trade between the U.S. and other countries.
In response, European Commission President Jean-Claude Juncker said the trade bloc would "not sit idly" if Trump goes ahead with his planned tariffs.
Following Juncker's comments, Trump warned the U.S. would apply a tax on European cars if the bloc wants to increase tariffs on American firms, a statement that has rattled European automakers.
The U.S. leader has since clawed back slightly on threats of global tariffs, and said the implementation of such levies could be prevented if a "new and fair NAFTA agreement" is signed.
Read the full Bloomberg report here.