European Green Light for Violent Trade Response to Trump Tariffs

 European Green Light for Violent Trade Response to Trump Tariffs

 

European Green Light for Violent Trade Response to Trump Tariffs

European Union countries approved a package of retaliatory tariffs on US goods worth €93 billion on Thursday evening, to take effect on August 7 if trade talks with the United States fail, according to European diplomats.

US President Donald Trump surprised the bloc this month when he threatened to impose 30 percent tariffs on EU goods if the two sides did not reach a trade agreement by August 1. Brussels and Washington appear to be moving toward an agreement on a 15 percent base tariff on EU goods, but the bloc continues to develop retaliatory plans in case the talks fail.

Thursday's list includes tariffs on €21 billion worth of US goods, including soybeans. This is in addition to a second list worth €72 billion, presented by the European Commission this month, targeting dozens of other products, including US aircraft and cars.

European Union countries approved a package of retaliatory tariffs on US goods worth €93 billion on Thursday evening, to take effect on August 7 if trade talks with the United States fail, according to European diplomats.

US President Donald Trump surprised the bloc this month when he threatened to impose 30 percent tariffs on EU goods if the two sides did not reach a trade agreement by August 1. Brussels and Washington appear to be moving toward an agreement on a 15 percent base tariff on EU goods, but the bloc continues to develop retaliatory plans in case the talks fail.

Thursday's list includes tariffs on €21 billion worth of US goods, including soybeans. This is in addition to a second list worth €72 billion, presented by the European Commission this month, targeting dozens of other products, including US aircraft and cars. European diplomats told AFP that the retaliatory tariffs on the total targeted goods, supported by 26 EU countries except Hungary, will reach 30 percent.

EU countries have supported the European Commission, which is leading the trade talks on their behalf, and have given the negotiations a deadline before threatening retaliatory measures. According to several diplomats, the US proposal being considered by the EU may include exemptions for aircraft, timber, pharmaceuticals, and agricultural goods.

However, there is also a stronger tone coming from major capitals such as Paris and Berlin, suggesting that Brussels must demonstrate its courage and readiness to respond forcefully if necessary. In addition to counter-tariffs on goods, the Commission is also preparing a separate list of proposed restrictions on US services companies, including technology and financial services firms, should talks with Washington fail.