European Green Light for a Tough Trade Response to Trump's Tariffs

SadaNews - The European Union countries approved on Thursday evening a package of retaliatory tariffs on American goods amounting to €93 billion, set to take effect from August 7, should trade talks with the United States fail, according to European diplomats.

U.S. President Donald Trump surprised the bloc this month when he threatened to impose a 30% tariff on European Union goods if the two sides do not reach a trade agreement by August 1.

It appears that Brussels and Washington are heading towards an agreement on imposing a basic 15% tariff on European Union goods, but the bloc continues to prepare plans for a response in case the talks fail.

The list from Thursday includes tariffs on American goods worth €21 billion, including soybeans. Additionally, there is a second list worth €72 billion that the European Commission proposed this month, targeting dozens of other products, including American airplanes and cars.

EU countries supported the European Commission, which is leading the trade talks on their behalf, and gave a grace period for negotiations before threatening retaliatory measures.

According to several diplomats, the American proposal being considered by the EU may include exemptions for airplanes, wood, pharmaceuticals, and agricultural goods.

However, there is also a more stringent tone coming from major capitals such as Paris and Berlin, stating that Brussels must show courage and readiness to respond vigorously if necessary.

In addition to the retaliatory tariffs on goods, the Commission is also preparing a separate list of proposed restrictions on American service companies, including technology and financial service firms, should talks with Washington fail.