The European Union (EU) has approved potential counter-tariffs on €93 billion ($109 billion) worth of U.S. goods if trade negotiations with Washington fail to yield a deal. This move comes as a response to the 30% tariffs on EU imports that U.S. President Donald Trump announced he would implement on August 1.
The 27-nation bloc aims to reach a negotiated settlement to avoid an escalation of the trade dispute. However, the European Commission is simultaneously preparing for potential countermeasures, merging two proposed tariff packages into a single list for approval by EU member states. These counter-tariffs would not take effect until August 7, allowing time for further negotiations.
Despite previous restraint, the EU is now poised to act if necessary. EU diplomats indicate that a possible trade deal is in the works, which could see a broad 15% tariff applied to EU goods entering the U.S., mirroring a framework agreement that Washington recently struck with Japan. Sectors such as cars and pharmaceuticals could be affected, while others like aircraft, lumber, certain medicines, and agricultural products might be exempt.
Experts warn that the U.S.’s tariff hikes could drive major European economies to distance themselves from the U.S. market. Gavran Igor, an economic analyst from Bosnia and Herzegovina, commented on the situation, saying, “This is no longer trade policy, but economic aggression. Washington is using trade policy as a tool of political coercion.”
Igor noted that the impending tariffs could disrupt global value chains and particularly harm smaller EU economies. In response, the EU is shifting towards a more assertive and diversified trade strategy to offset expected losses from a more protectionist United States.
Looking for long-term stability, Igor highlighted the importance of aligning with consistent economic partners, particularly in East Asia. “China stands out, not just for its market scale, but for its economic consistency. Unlike the U.S., where trade policy flips with every administration, China provides planning stability over decades,” he said.
