EU states on Thursday, July 24, approved a €93 billion ($109 billion) package of counter-tariffs on US goods that would kick in from August 7 if talks with the United States fail, European diplomats said. US President Donald Trump blindsided the European Union this month when he threatened a 30% levy on EU goods unless the two sides reach a trade deal by August 1.
Brussels and Washington appear to be inching toward a deal with a baseline 15% levy on EU goods, but the bloc is still forging ahead with detailed retaliatory plans in the event of no accord.
Thursday's list includes previously agreed levies on €21 billion of US goods, including soybeans. Added to that is a second list of €72 billion put forward by the European Commission this month, targeting dozens more products including US planes, cars and whisky.
Backed by 26 EU countries except Hungary, the counter-tariffs on the totality of the goods targeted would be up to 30%, European diplomats told Agence France-Presse. EU states have supported the European Commission, which is leading trade talks on behalf of the 27-nation bloc, and allowed time for negotiations before threatening reprisals.
According to multiple diplomats, the US proposal being examined by the EU could include sectoral carve-outs for aircraft, lumber, pharmaceutical products and agricultural goods. However, there is also a tougher tone coming out of key EU capitals, Paris and Berlin, that Brussels must show its mettle and willingness to react forcefully if needed.
In addition to the two sets of counter-tariffs on goods, the commission is also preparing a separate list of proposed restrictions on US services companies – including tech and financial services – should talks with Washington fail.