EU plans 30% tariffs on US goods

The European Union plans to quickly impose 30% tariffs on €100 billion ($117 billion) worth of goods on the United States if no agreement is reached and if US President Donald Trump carries out his threat to impose that rate on most EU exports after August 1.

As part of the first wave of countermeasures, the EU will combine a list of already approved tariffs on €21 billion worth of US goods and a previously proposed list on an additional €72 billion worth of US products into a single package, a European Commission spokesman said Wednesday.

According to Bloomberg, US exports, which include industrial goods such as Boeing aircraft, US-made cars, and bourbon whiskey, will face a 30% tax equivalent to Trump’s threatened 30%, according to people familiar with the matter.

The people, who spoke on condition of anonymity to discuss private deliberations, said the tariffs are set to take effect next month, but only if there is no agreement and the US applies its duties after the August deadline. These plans come as EU member states, including Germany, have hardened their positions in response to the United States’ toughening of its negotiating position.

A government official, speaking on condition of anonymity, said Berlin is prepared to support the activation of the EU’s Anti-Coercion Instrument (ACI) in the event of a no-deal scenario. This instrument would only be activated if a deal fails.

The ACI is the EU’s most powerful trade instrument, and a growing number of member states are pushing for its use in the event of a no-deal scenario. Designed primarily as a deterrent, it is currently off the table, as activation requires a qualified majority of member states to support the move. The ACI would enable the EU to launch a wide range of retaliatory measures, including new taxes on US tech giants, targeted restrictions on US investments, and restricted access to the EU market. “We are now approaching a decisive stage in the tariff dispute with the United States. We need a fair and reliable agreement with low tariffs,” German Chancellor Friedrich Merz told reporters in Berlin on Tuesday after meeting with his Czech counterpart, Petr Fiala. “Without such an agreement, we risk economic uncertainty at a time when we need exactly the opposite.” However, a majority of participants prefer to keep negotiations with Washington on track in an effort to reach a solution to the crisis before next month’s deadline.