EU Issues $84 Billion Tariff Threat Amid Stalled Trade Talks with U.S.
EU Issues $84 Billion Tariff of U.S. goods that could face tariffs if trade talks between the EU and the U.S. fail. The move comes as a direct response to tariff threats from Washington and shows Brussels is ready to act.
EU Prepares for Possible Breakdown in Talks
On Monday, European Trade Commissioner Maros Sefcovic brought up the idea at a meeting of EU trade ministers in Brussels.
Sefcovic said, “This list includes about €72 billion in U.S. imports.” He said that the EU wants an agreement, but it needs to be ready in case talks break down.
Donald Trump, the president of the United States, reportedly said that his government would put 30% tariffs on EU imports if an agreement isn’t reached by August 1. This warning stopped months of extensive talks. The threat also made some worry that the two powers might start another expensive trade war.
EU Seeks Agreement but Readies Retaliation
Even if Trump has made threats, EU trade ministers say they still want to talk things over.
“We all agree on our position. Danish Foreign Minister Lars Løkke Rasmussen remarked, “But we also need to be ready to respond.” Denmark is now the EU’s rotating president.
The EU has already produced a second list of duties on U.S. goods totaling €21 billion in addition to this new one. That list is a response to the U.S. tariffs on EU steel and aluminum that came before it. The EU has, however, chosen not to put those levies into effect yet. Leaders want to come to an agreement before the deadline in August.
Markets React as Deadline Nears
The EU’s actions aim to keep pressure on Washington while avoiding a full-scale trade conflict. Officials say the proposed tariffs are a backup, not a first option.
Meanwhile, stock markets have shown concern. Wall Street dipped following the renewed trade threats from the U.S. side.
With only a few weeks left until the deadline, investors and governments all around the world are keeping a tight eye on things. In the next few days, we’ll find out if the two sides can work out their disagreements or if the EU will really put $84 billion in tariffs on goods from the US.
