Key Points
- The U.S. plans to impose a 30% tariff on goods from the EU and Mexico, and a 35% tariff on Canada, starting August 1.
- The EU calls the threat “absolutely unacceptable” and is prepared to retaliate with its tariffs on $24.5 billion of U.S. goods if talks fail.
- While negotiations are ongoing, the EU is frustrated with a lack of progress from the U.S. side.
- The threatened tariffs are creating major concern for European economies, especially export-heavy Germany.
The European Union is pushing back hard against the United States over stalled trade talks, warning it will launch countermeasures if Washington follows through on its latest tariff threats. The conflict escalated after President Donald Trump announced he would impose a steep 30% tariff on most imports from the EU and Mexico starting August 1.
EU ministers, meeting in Brussels, expressed growing frustration. While they stressed a desire to keep negotiating, their patience appears to be wearing thin. Danish Foreign Minister Lars Lokke Rasmussen labeled the US threat “absolutely unacceptable.” EU Trade Chief Maros Sefcovic added that while a deal is still possible, Washington’s lack of engagement is the main roadblock. “It takes two hands to clap,” he said, confirming that the 27-nation bloc would have to respond if talks collapse.
In a clear sign of its seriousness, the EU has already prepared a response. Italy’s Foreign Minister Antonio Tajani said a list of retaliatory tariffs on $24.5 billion worth of American goods is ready to go if a deal isn’t reached.
From the White House, economic adviser Kevin Hassett confirmed that talks are still underway but gave a noncommittal “We’ll see” on the chances of success, noting they have a “few weeks left.”
The tariff threat is causing major anxiety in Europe, especially in Germany, whose export-driven economy would be hit hard. German business leaders called for urgent action to avoid a trade collapse. Meanwhile, industries are already preparing for the worst, with Italian wine producers looking for new markets in Asia and South America.
The August 1 deadline has triggered a global scramble for deals. Other nations are also in the crosshairs, with Canada facing a 35% tariff and South Korea a 25% tariff. South Korean officials are now rushing to strike a last-minute agreement, hoping to avoid a major blow to their key industries.
