The European Union will propose tariffs on Boeing Co. aircraft and US-made cars if talks with President Donald Trump’s administration fail to de-escalate a brewing trade conflict, according to people familiar with the deliberations.

Aerospace companies are preparing for the next chapter in a new trade war as the European Union draws up expected counter-measures against Boeing jets in retaliation for 10% U.S. tariffs on European goods such as Airbus planes,

Brussels intends to propose tariffs on Boeing aircraft as it prepares further retaliation in the event that trade talks with Washington fail. The European Commission, which runs EU trade policy, will include civilian aircraft on a list of about €100bn of annual US imports to be targeted,