Brussels (Brussels Morning Newspaper) – European Union member states voted on Thursday to endorse counter-tariffs on 93 billion euros of American goods, which could be implemented if Brussels does not reach a trade agreement with the US, according to EU diplomats.
All member nations except for Hungary voted in acceptance of the European Commission’s presented list, which would hit a broad spectrum of US goods, including aircraft, cars, wine, and medical and electrical tools. The tariffs will come into effect on 7 August if no agreement is reached.
Why is the EU preparing tariffs on US goods?
The European Union is moving toward a trade agreement with Washington that would impose a 15% tariff on EU exports to the U.S., avoiding the planned 30% tariff set for August 1.
US President Donald Trump has already implemented a 50% tariff on steel and aluminum, a 25% duty on automobiles and auto parts, and a 10% baseline levy impacting €370 billion worth of EU goods, which accounts for 70% of the EU’s total exports to the US. The EU has not yet responded with retaliatory measures against Trump’s tariffs.
On Wednesday, the European Commission stated that its main goal was to reach a negotiated agreement with Washington to prevent the 30% U.S. tariffs that President Donald Trump announced he would implement on August 1.
When will the EU tariffs take effect if triggered
The Commission stated it would continue with its plans for possible countermeasures, combining two sets of proposed tariffs—€21 billion and €72 billion—into one list and submitting it to EU member states for approval.
No countermeasures took effect until August 7. Up to that point, the EU had refrained from implementing any countermeasures, even though Trump repeatedly announced tariffs, most of which were postponed. In April, EU member states approved the initial package of countermeasures, but these were immediately suspended to give space for negotiations.
Why has the EU delayed countermeasures until August 7?
EU diplomats indicate that the EU and U.S. are moving toward a potential trade agreement, which could impose a 15% tariff on EU imports to the U.S. Similar to a framework deal Washington made with Japan, Trump would still have to approve the final decision.
In the proposed deal, the 15% rate might apply to sectors such as cars and pharmaceuticals, without increasing the existing U.S. duties, which are generally below 5%.
Diplomats mentioned that certain sectors, including aircraft, lumber, some medicines, and agricultural products, might receive concessions and would not be subject to tariffs.
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