Italy: Europe Ready to Impose €21 Billion in Tariffs if No Agreement with America is Reached

SadaNews: Italian Foreign Minister Antonio Tajani said in a press interview on Monday that the European Union has already prepared a list of tariffs on American goods valued at €21 billion ($24.52 billion) in case the two parties fail to reach a trade agreement.

U.S. President Donald Trump had threatened on Saturday to impose a 30% tariff on imports from Mexico and the European Union starting August 1, following weeks of negotiations that did not lead to a comprehensive agreement with the United States' major trading partners.

Tajani added to the Italian newspaper Il Messaggero that the European Central Bank should consider launching a new quantitative easing program (bond purchases), in addition to proceeding with interest rate cuts, to support the Eurozone economy, according to "Reuters".

On Sunday, the European Union stated that it would extend the suspension of counter-measures to U.S. tariffs until early August and would continue to push for a resolution through negotiations, at a time when the Trump administration is demanding more concessions from trading partners.

White House economic adviser Kevin Hassett stated on Sunday that the trade deal offers presented by countries so far have not satisfied Trump and that "tariffs will be applied" if there are no improvements.

Meanwhile, European Commission President Ursula von der Leyen said that the European Union will continue along two tracks: continuing negotiations and preparing countermeasures.

She added during a press conference: "We have always been clear in our preference for a negotiated solution. This still stands, and we will make use of the time available to us now," noting that the European Union will extend its suspension of countermeasures until August.

Von der Leyen's decision to refuse to take any immediate countermeasures indicates the European Commission's desire to avoid escalating the trade war as long as there is an opportunity for negotiation towards a better outcome.