EU says could slap US with €21-billion tariff package with possibility of extension
The European Union has prepared a €21-billion ($24.52-billion) tariff list it plans on slapping the United States with in exchange for Washington’s threatening the bloc with a sizable 30-percent tariff onslaught on imports, which Europe says practically kills trade.
The tariff package targeting American goods will be ready to take effect if trade talks between the two sides collapsed, Italy’s Foreign Minister Antonio Tajani said in a newspaper interview on Monday.
The move came after US President Donald Trump’s recent threat to slap a 30%-tariff round on imports from Mexico and the EU, starting on August 1, following weeks of unsuccessful negotiations.
Tajani also warned that the €21-billion tariffs could be just the first wave, with a possible second round looming if a deal remained out of reach.
Despite having readied the retaliatory tariffs, the EU has opted to extend its temporary suspension of countermeasures against US tariffs until early August, holding out hope for a negotiated resolution.
‘US cutting own throat’
Adding to his remarks, the Italian official cautioned that the first party to suffer from the American tariffs was Washington itself.
“Tariffs hurt everyone, beginning with the United States,” Tajani warned, highlighting the broader economic risks, including potential stock market drops that could jeopardize American pensions and savings.
His vision, he added, rather calls for “zero tariffs” and an open market spanning Canada, the US, Mexico, and Europe.
Europe bands together to fend against trade war
Separately, German Chancellor Friedrich Merz vowed to collaborate closely with French President Emmanuel Macron and European Commission President Ursula von der Leyen to defuse the escalating trade war.
European Trade Commissioner Maros Sefcovic echoed cautious optimism, suggesting that both Washington and Brussels were edging towards a mutually beneficial agreement.
He warned, nevertheless, that a 30-percent tariff would effectively cripple trade vitality.
The developments came less than a week after Canada too vowed to strengthen its economy by diversifying trade partnerships, particularly with the EU, amid escalating trade tensions fueled by Trump’s aggressive tariff threats.
Pointing to the intention, Industry Minister Mélanie Joly rejected the US’s protectionist approach, while committing to protect Canada’s workers and supply chains through proactive economic diplomacy.
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