"If the US does not bring its legislation into conformity with its international obligations the EU would impose retaliatory measures early in 2005," said a press release from the EU trade office on Tuesday.
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Brazil, Canada, India, Korea, Japan and Mexico can also do the same to US products coming into their own countries.
These countries were given the green light to go ahead with sanctions against the US last week by the World Trade Organisation (WTO).
Whether the US will play tit for tat is yet to be seen, but the EU has already warned the US to play by the ruling of the multilateral trade body to avoid a full-scale trade war.
The WTO found the US guilty of using anti-dumping and countervailing laws to discriminate