European states have approved retaliatory measures amounting to €93 billion that would be implemented from 7 August if trade negotiations with the United States fail, diplomats announced on Thursday.
The EU has prepared a list of American goods to be taxed if Donald Trump’s United States imposes a 30% tariff on European imports, as they have threatened to do from 1 August.
Europe remains hopeful for a negotiated solution but has listed American goods to be taxed starting on 7 August should talks fail, with an initial list covering €21 billion, expanded by a second list up to €72 billion.
The EU decided on Thursday to merge these two lists, encompassing a wide range of goods, including soybeans, aircraft, and cars. Negotiations continue and a potential agreement seemed to be forming as of Thursday, with US tariffs reduced to 15% and several exemptions regarding the aerospace and pharmaceutical sectors.
However, Europeans are prepared to remain firm if negotiations break down once again. Alongside these retaliatory measures nearing €100 billion, the EU also possesses an “anti-coercion instrument,” a powerful trade tool that extends beyond simple customs duties.
Originally designed to counter China’s perceived unfair practices, this instrument allows the EU to block certain investments or access to its public procurement markets.
