European Union officials are poised to respond to President Trump's tariff threats with a detailed retaliation plan targeting over $100 billion in American goods. However, doubts remain about whether they will follow through.
EU Prepares for Trade Retaliation Against U.S. Tariffs
EU Prepares for Trade Retaliation Against U.S. Tariffs
As President Trump threatens new tariffs, the EU finalizes plans for significant retaliatory measures, but uncertainty looms over their execution.
European Union officials have recently been drafting plans aimed at countering the threat of tariffs from President Trump, anticipating a shake-up in trans-Atlantic trade relations. The EU is prepared to impose levies on American imports exceeding $100 billion if current trade negotiations do not yield favorable results.
The uncertainty around the execution of these plans hangs heavily in the air. “If it comes to it, will they?” questioned Frances Burwell, a researcher with the Atlantic Council’s Europe Center, illustrating the mixed signals from EU policymakers over the previous months. Although they have long been gearing up for possible tariffs, there have been multiple instances where they opted for a diplomatic approach instead.
In April, for example, the EU initially cleared a plan to impose tariffs worth €21 billion (approximately $25 billion) on American products, only to call it off as goodwill when Trump signaled he would pause some broader tariffs. This diplomatic gesture has since turned futile with a lack of a subsequent trade deal.
Last week, Trump announced his intention to implement 30 percent tariffs on the EU beginning August 1, prompting officials to once again delay their already crafted retaliatory measures, which had been set to be reinstated shortly after July 14. Nevertheless, EU representatives have reiterated their commitment to respond decisively if the situation demands it.
In a show of preparedness, EU trade officials are finalizing a comprehensive second list of tariffs, targeting a broader array of American goods valued at €72 billion ($84 billion), including Boeing aircraft and Kentucky bourbon. Diplomatic sources indicate this proposed list has been shared with member states for review, though it is still awaiting their approval.
Despite these aggressive preparations, the EU is emphasizing its preference for a negotiated resolution, desperately hoping to circumvent an escalated trade conflict. Many officials believe that assertiveness is now the most effective means of negotiation, particularly with Trump at the helm, whose approach often appears to prioritize strength over dialogue.
