Brussels (dpa) – The EU is preparing to impose additional counter-tariffs on US imports amounting to 72 billion euros in response to recent tariff announcements by US President Donald Trump. During a trade minister meeting in Brussels, EU Commissioner Maros Sefcovic stated that preparations are being made for all possible outcomes.
He emphasized that the EU will continue to seek a negotiated resolution until the beginning of August, after which Trump intends to implement a 30 percent tariff on EU imports, as announced last Saturday.
Sefcovic cautioned that the enforcement of Trump’s plans could severely impact transatlantic trade, stating, “Let’s be honest: A tariff rate of 30 percent would be equivalent to a de facto trade ban.” He noted that such measures would lead to significant adverse effects on both sides of the Atlantic.
Initial list included imports worth 95 billion euros
In its countermeasure preparations, the EU has a list of US industrial and agricultural products targeted for new tariffs should the efforts for a peaceful settlement fail. This list has been slightly modified following a public consultation, initially encompassing imports valued at 95 billion euros.
Details on which products have been temporarily removed from the list have not been disclosed by Sefcovic, who mentioned that these items can be reconsidered by member states. The initial proposal included notable US products such as airplanes, cars, and bourbon whiskey.
Trump’s letter brings “completely different dynamics”
At the meeting, both Sefcovic and the current Danish EU Council presidency expressed significant disappointment regarding Trump’s actions. “We have been negotiating a framework agreement for weeks, and I believe we were close to a resolution,” said the EU Commissioner. Trump’s letter has introduced “a completely different dynamic.”
Danish Foreign Minister Lars Løkke Rasmussen, chairing the EU Trade Council, labeled Trump’s announcement as “absolutely unacceptable and unjustified,” and made clear that the USA should expect resolute countermeasures if they proceed with their plans.
Counter-tariffs have already been established in response to the newly imposed tariffs on steel and aluminum imports. Previous EU statements indicated these would impact US exports amounting to 21 billion euros and could be added to the 72 billion euros in tariffs.
Moreover, the EU Commission has recently outlined restrictions on certain EU exports of scrap steel and chemical products to the USA valued at 4.4 billion euros. The use of a new EU instrument against coercive measures has not been ruled out, potentially restricting US companies’ access to public contracts in the EU.
Threatened trade war
Regarding future negotiations, Sefcovic expressed confidence that despite Trump’s letter, his US counterparts remain open to discussions. He is fully convinced that a negotiated resolution is far preferable to the tensions likely to arise from further escalation after August 1, noting, “This matter will not end well otherwise.”
The highly export-oriented German economy is seen as particularly vulnerable in a trade war. An analysis by the Bundesbank reveals that nearly one in four jobs in Germany depends on exports, which have already decreased in 2024 and face additional pressure due to the ongoing tariff dispute with the USA. (July 14)
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