Brussels: The European Commission announced a potential retaliatory measure targeting US goods worth 72 billion euros ($84 billion) in response to President Donald Trump’s unexpected decision to impose a 30% tariff on EU goods if no deal is reached by August 1. This announcement was made by the European Commission’s trade chief, Commissioner Maros Sefcovic, during a meeting with EU ministers in Brussels.
According to France24.com, the EU’s move aims to counterbalance the disruption caused by Trump’s tariff threat, which jeopardized months of negotiations. The EU had previously prepared a list of US imports worth 21 billion euros as a response to earlier tariffs imposed by Trump on steel and aluminum. However, European Commission chief Ursula von der Leyen had postponed implementing those measures as a gesture of goodwill towards the US.
Sefcovic emphasized that the imposition of a 30% tariff would severely hinder trade between the US and the EU, describing it as “almost impossible.” EU nations are striving to maintain a unified stance in their negotiations with Washington, recognizing the varying degrees of impact on different member states’ economies. French trade minister Laurent Saint-Martin urged for comprehensive retaliation plans, stating that recent developments necessitate a strategic reassessment.
Since resuming office in January, Trump has introduced a series of fluctuating tariffs on both allies and competitors, causing instability in financial markets and concerns over a potential global economic downturn. While the Trump administration faces pressure to finalize trade agreements, only two deals have been announced so far, with Britain and Vietnam, alongside temporary adjustments in tariffs with China.
The EU’s tariff level was initially set to rise from a baseline of 10% last Wednesday, but the deadline was extended to August 1 by Trump. This move follows a previously proposed 20% levy in April, which was postponed until mid-July. Ireland’s minister, Thomas Byrne, emphasized the importance of securing a deal before the new deadline, highlighting the need to protect investments and jobs across Europe.