EU prepares 30% tariffs against US if Trump introduces similar rate from August 1 - Media
Kyiv • UNN
The European Union plans to impose 30% tariffs on American goods worth about 100 billion euros if the US follows through on its threat of tariffs after August 1. This will include industrial goods, cars, and whiskey, affecting a third of American exports to the EU.
The European Union plans to quickly introduce 30% tariffs on goods worth about 100 billion euros if there is no agreement with United States President Donald Trump and if he fulfills his threat to introduce this rate on most of the EU's exports after August 1. This is reported by UNN with reference to Bloomberg.
Details
As part of the first wave of countermeasures, the EU will combine the already approved list of tariffs on American goods worth 21 billion euros and the previously proposed list for an additional 72 billion euros of American products into one package, a European Commission spokesman said on Wednesday.
US exports, which include industrial goods such as Boeing Co. aircraft, American-made cars, and bourbon whiskey, will face tariffs that match Trump's 30% threat, sources familiar with the matter said.
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The retaliatory threat from Brussels will affect approximately one-third of American exports to the EU, based on the 335 billion euros of American goods supplied to the bloc last year.
The tariffs will be ready to take effect next month, but only if there is no agreement and the US imposes its tariffs after the August deadline, sources who wished to remain anonymous said.
After the report was published, the euro continued to fall by 0.3% to $1.1723, which was the main indicator among major currencies. German bonds cut earlier losses.
These plans come as EU member states, including Germany, have strengthened their positions in response to the US's strengthened negotiating position.
Berlin would even be ready to support the activation of the EU's anti-coercion instrument, or ACI, in the event of no agreement, a government official said on condition of anonymity. This instrument will only come into force if no agreement is reached.
On Tuesday, Trump announced two tariff agreements — one with the Philippines and another with Japan, and both involved widespread tariffs on their imports that were lower than initially announced. Also noteworthy was the US's 15% tariff on Japanese cars, which was lower than the current 25% rate for major car exporters, including the EU.
European leaders are in Tokyo and Beijing this week for talks with some of the bloc's largest trading partners in Asia.
US Treasury Secretary Scott Bessent, speaking on Bloomberg Television on Wednesday, said that the EU has not yet offered anything as innovative as Japan's proposal.
Negotiations are going better than before. I think we are making good progress with the EU, but, as I said before, the EU has a collective action problem with 27 countries
The EU's most powerful trade tool is the ACI, and an increasing number of member states are pushing for its use if an agreement is not reached. This tool is primarily designed as a deterrent and is not currently being considered, and its activation requires a qualified majority of member states to support the move.
The ACI will allow the EU to introduce a wide range of retaliatory measures, including new taxes on American tech giants, targeted restrictions on US investments, and restrictions on access to the EU market.
We are now approaching a crucial phase in the tariff dispute with the US - we need a fair, reliable agreement with low tariffs. Without such an agreement, we risk economic uncertainty at a time when we actually need the opposite
Currently, the main position of all parties is to continue negotiations with Washington in an attempt to find a way out of the deadlock before next month's deadline. EU and US negotiators plan to continue talks on Wednesday.
Addition
Germany and France rally EU members to support retaliatory measures against US tariffs until Washington compromises. They propose using the Anti-Coercion Instrument (ACI), which would allow blocking American companies and restricting imports/exports.