EU Considers Retaliation as U.S. Tariff Talks Falter

 

Brussels Prepares Countermeasures Amid Rising Trade Tensions

The European Union is intensifying preparations for trade retaliation against the United States as hopes for a tariff agreement dwindle. Following President Donald Trump's threat to impose a sweeping 30% tariff on EU exports by August 1, EU diplomats report a shift in strategy from negotiation to readiness for economic countermeasures.

EU Trade Commissioner Maros Sefcovic recently briefed envoys on the deteriorating talks, noting that U.S. officials presented inconsistent proposals and failed to offer a unified path forward. The EU had previously considered accepting a 10% tariff with limited concessions, but Trump's escalating demands have prompted member states to explore broader responses.

Among the options under review is the Anti-Coercion Instrument (ACI), a powerful tool that would allow the EU to target U.S. services, restrict American investment, and limit access to public procurement markets. While originally designed to counter pressure from China, the ACI is now being eyed as a potential response to Washington’s aggressive trade stance.

The EU has already suspended a package of tariffs on €21 billion worth of U.S. goods until August 6, but is also weighing additional countermeasures on €72 billion of exports. France has long supported invoking the ACI, and Germany is now signaling openness to the idea, suggesting growing consensus within the bloc.

Despite the hardening tone, EU leaders maintain that a negotiated solution remains preferable. European Commission President Ursula von der Leyen emphasized that the ACI is reserved for extraordinary circumstances, stating, “We are not there yet”.

With the August deadline looming, the EU faces a critical decision: continue pursuing diplomacy or brace for a full-scale trade confrontation.