EU Prepares Counter-Tariffs If Negotiations with the US Fail
The European Union is currently in intensive negotiations with the United States to avoid new 30% tariffs imposed by President Donald Trump on a range of European products, including cars, aircraft, and industrial goods. These tariffs are scheduled to take effect on August 1, 2025. Although no agreement has been reached, EU officials say negotiations are ongoing and they will use every remaining time before the deadline.
However, if negotiations fail, the EU is already preparing retaliatory measures. The European Commission revealed that it has a list of retaliatory tariffs worth up to €72 billion, which it will impose on a range of US products, from liquor and machinery to electronics and agricultural goods. The EU is also considering an additional tariff package of up to €93 billion, including duties on US digital services, if trade tensions escalate.
Top EU officials have described the US tariffs as unacceptable. Maroš Šefčovič, the EU's trade official, called the tariff increase "completely unacceptable." Meanwhile, European Commission President Ursula von der Leyen emphasized that the European Union remains open to dialogue but will act decisively if the US persists with high tariffs. "We have until August 1st to reach a solution. But if not, we are prepared to consider all options," she said.
With no final agreement yet, the trade situation between the US and the EU remains uncertain. Global investors and industry players are now awaiting the final outcome of these negotiations. If tariffs are actually implemented without a solution, the potential for a major trade war between these two giant economic blocs will have far-reaching impacts not only on global trade but also on the stability of global financial markets.
Source: (ayu-newsmaker)
