EU considers retaliatory tariffs on US goods worth 72 billion euros
The European Union is preparing possible countermeasures against the United States in response to president Donald Trump's planned tariffs on European imports. On Monday, EU member states discussed a revised list of US goods worth 72 billion euros that could face retaliatory tariffs if no trade agreement is reached by 1 August, European commissioner for trade Maroš Šefčovič confirmed following a meeting of EU trade ministers.
The move comes after Trump announced, in a letter on Saturday, his intention to impose a 30 per cent import tariff on EU goods starting 1 August. The announcement was met with firm opposition from European capitals.
"Unacceptable and unjustified"
According to Danish foreign minister Lars Løkke Rasmussen, who chaired the Council of Ministers on behalf of the Danish Council Presidency, "the Member States find this tariff absolutely unacceptable and unjustified." He added that ministers have urged the European Commission to continue negotiations while simultaneously preparing concrete countermeasures.
At a press conference, Šefčovič stressed the EU's preference for a negotiated outcome. "The EU continues to pursue an agreement that benefits both the EU and the US," he said, but warned that "you need two hands to clap." In the meantime, the EU is working to "rebalance" the trade relationship.
©PHOTO ANSGAAR HAASE / DPA
Revised tariff list
The newly proposed list of goods is a scaled-back version of the initial 95 billion euro draft. After consultation with stakeholders and national governments, the scope was narrowed to 72 billion euros in US products. This would be in addition to the 21 billion euro list prepared in response to earlier US tariffs on aluminium and steel, which have been placed on hold until 1 August to give diplomacy a chance.
Šefčovič noted that this round of discussions showed increased resolve among EU ministers. “They were more assertive than during the previous meeting regarding the need to protect jobs, businesses, and the economy,” he said.
While the second list still requires formal approval from member states, Šefčovič said that the EU is keeping all tools at its disposal. These include the anti-coercion instrument, referred to as a "bazooka", which could target US services exports, among other sectors. “But we’re taking it step by step, day by day,” he concluded.
© PHOTO KENZO TRIBOUILLARD / AFP
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