The European Union has unveiled a contingency plan to impose tariffs on $84 billion worth of U.S. goods if negotiations with Washington collapse ahead of an August 1 deadline. The proposal, presented by EU Trade Commissioner Maros Sefcovic, signals escalating tensions as both sides seek to avoid a full-blown trade war.
Deadline Pressure and Retaliatory Measures
The EU’s move follows U.S. President Donald Trump’s threat to impose 30% tariffs on EU exports unless a deal is reached by August 1. EU trade ministers unanimously agreed to prepare retaliatory measures while continuing talks. Denmark’s Foreign Minister Lars Lokke Rasmussen called the U.S. threat “unacceptable,” emphasizing the bloc’s readiness to act.
Existing Tariff Battles and Economic Stakes
Brussels has already drafted a separate $21 billion list of U.S. imports for retaliation over earlier U.S. steel and aluminum tariffs. With global markets on edge, businesses and investors are closely monitoring the talks, which could reshape transatlantic trade flows and impact supply chains across Asia and beyond.
Next Steps for Negotiations
While the EU remains committed to securing a deal, analysts warn that failure could disrupt industries from agriculture to automotive sectors. The bloc’s dual strategy—diplomacy paired with retaliation plans—highlights the high stakes for multinational corporations and emerging economies tied to U.S.-EU trade.
