Wed Jul 16 13:00:56 UTC 2025: **EU Prepares Retaliatory Tariffs as Trade War Looms with US**
Brussels – The European Union is bracing for a potential trade war with the United States, as President Donald Trump threatens to impose a 30% tariff on European goods starting August 1st. Despite the looming deadline, EU Trade Commissioner Maros Sefcovic insists the EU is committed to finding a negotiated solution “until the last minute.”
The European Commission has reportedly drawn up a list of retaliatory tariffs targeting $84 billion (€72 billion) worth of US goods, ranging from cars and machinery to agricultural products and alcoholic beverages like bourbon. This move comes in response to Trump’s announcement, which aims to address the US’s $235.6 billion trade deficit with the EU.
Negotiations between the US and EU have been ongoing for months, with previous offers from the EU, including a zero-for-zero tariff deal on industrial goods, rejected by Trump. Sefcovic acknowledged a “big gap” remains between the two sides, stating that the proposed 30% tariff would “practically prohibit trade.”
While the EU hopes to avert a trade war, it is preparing to protect its economy. The potential economic fallout is significant. Economists predict that a full-blown trade war could severely impact the Eurozone’s already fragile economic recovery, potentially pushing the EU “to the edge of recession.” Germany, a major exporter, stands to lose over €200 billion by 2028.
Within the EU, divisions exist on how to approach the situation. While some members, like Germany, are pushing for a quick deal, others, like France, are wary of making concessions that favor the US.
The clock is ticking as the August 1st deadline approaches. The EU insists it is committed to a negotiated solution but is simultaneously preparing for the worst, ready to deploy retaliatory tariffs to protect its economic interests.
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