The European Union is readying a sweeping €100 billion ($117 billion) package of retaliatory tariffs on American goods if President Donald Trump follows through on his threat to impose a 30% levy on most EU exports after August 1, as per a Bloomberg report.
In the absence of a deal, the EU would combine an already approved €21 billion tariff list with a previously proposed €72 billion set of duties into a single response package, the report said, citing officials.
The levies would mirror Trump’s proposed 30% rate and target a broad range of US exports including Boeing aircraft, American-made cars, and bourbon whiskey.
The countermeasures would be ready to go into effect next month, but only if Washington proceeds with its tariff plan.
As per the report, the EU remains open to a negotiated outcome and sees the measures as contingency planning.
EU plans to stand up to Trump
The renewed escalation follows hardening positions across the bloc, particularly in Germany, after the US stiffened its negotiating stance in recent weeks.
A German government official said Berlin would support triggering the EU’s anti-coercion instrument (ACI) in a no-deal scenario.
While not currently active, the ACI is viewed as the EU’s most powerful trade deterrent and would allow the bloc to impose a broader suite of retaliatory actions, including taxes on US tech firms, investment restrictions, and market access curbs.
Support for activating the ACI is growing, though it would require backing from a qualified majority of EU member states.
“We are now approaching the decisive phase in the tariff dispute with the USA. We need a fair, reliable agreement with low tariffs,” German Chancellor Friedrich Merz said Tuesday in Berlin after a meeting with Czech Prime Minister Petr Fiala.
“Without such an agreement, we risk economic uncertainty at a time when we actually need exactly the opposite.”
Despite the preparations, the EU’s stated preference remains a negotiated settlement ahead of the August deadline.
Japan deal brings hope
Trump has turned his attention to trade negotiations with the European Union, following the announcement of a framework agreement with Japan.
“We have Europe coming in tomorrow, and the next day, we have some other ones coming in,” Trump said late Tuesday, offering no further details.
On the European side, a European Commission spokesperson confirmed that EU Trade Commissioner Maros Sefcovic is scheduled to hold talks with US Commerce Secretary Howard Lutnick on Wednesday.
“The EU’s primary focus is on achieving a negotiated outcome with the US. Intensive technical and political level contact is ongoing,” the spokesperson said.
With an August 1 deadline looming, pressure has intensified on both sides to secure a deal.
The Trump administration has so far shown no signs of extending the tariff deadline again.
“The Japan deal has significantly raised hopes that the EU might also be able to reach a trade deal,” Deutsche Bank Research said in a note Wednesday, reflecting growing optimism in financial markets over potential progress on transatlantic trade.
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