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What the US politicians think, decide and legislate is irrelevant: the US actually targetting EU nations would directly yield counter-sanctions from the whole of the EU because that's a core part of the EU Membership Treaties (so, not the kind of thing that can just be blocked by a veto from a US-friendly EU member nation), and those would seriously impact the US Economy, not to mention the indirect impact on the US' broader geostrategical influence from treating the EU as an adversary.
For the EU it would be something like Brexit - even if the EU loses from a hard posture, it cannot afford to let the other side get away with it without very painful consequences because that would result in them doing even worst things later and would incentivise others to do the same - only in this case the EU would suffer way less from playing hardball with the US than it did from doing it with Brexiting Britain.
For the US it would basically be comitting Trade Suicide at the feet of China.
If the US Congress and Senate are too stupid and actually pass those laws and POTOS too is too stupid and actually uses it, all without the companies that are going to get screwed the most by counter-sanctions (mainly Tech) lobbying that proposal away into nothing, thats a lot more a US problem than an EU problem and there is no way at all that the upsides are close to even just begin to justify the downsides.
(Sure it would hurt the EU, just a lot less than doing nothing about it would).
Personally I would love for the US policians to try it and find out.
If Trump, god forbid, were elected, one of the things he has threatened is to withdraw from NATO and let Putin just overrun Europe. It will be difficult to do anything economically when being actively invaded by someone who doesn't care about the lives of his own soldiers, much less that of civilians.
Putin isn't even able to overrun Ukraine who have been getting mostly equipment from 1 generation ago, mostly late and with a ton of limitations imposed on its use, and has a much smaller population than Europe (and a tiny Economy next to it), and you think he would be able to overrun Europe?
Poland alone would probably suffice to stop him.
That's with Western weaponry helping out. But with orange man, Europe would be on its own. I can only hope you're right with Poland if things go south.