EU Readies Countermeasures in Case of Failed Negotiations With US

European Union member states voted to authorize retaliatory tariffs on €93 billion (US$109 billion) worth of US products, a move designed to counter the 30% tariff that President Donald Trump has threatened to impose starting Aug. 1.

The European Commission, the European Union’s executive arm, stated its priority remains reaching a negotiated deal with Washington to avoid the new US tariffs. Still, it is preparing for all outcomes. As part of the contingency plan, the Commission merged two proposed tariff lists, €21 billion and €72 billion, into a single package. This gives the EU greater flexibility in responding and allows the bloc to impose broad-based countermeasures if necessary.

These measures would not take effect until Aug. 7. Though member states had authorized initial countermeasures back in April, they were suspended to allow time for negotiations.

According to EU officials, both sides are now moving closer to a potential agreement modeled on the US-Japan deal, which would impose a 15% general tariff on EU imports, mainly in the automotive and pharmaceutical sectors, without layering over existing US tariffs, which currently average just under 5%.

Concessions could also include exemptions for aerospace, timber, agriculture, and certain pharmaceutical products. However, the United States appears unwilling to lift its longstanding 50% tariff on steel imports.