EU Prepares €21B Tariff Response to Trump’s Trade Threats

The European Union is readying €21 billion worth of tariffs on U.S. goods if trade talks fail, according to Italian Foreign Minister Antonio Tajani. This move follows U.S. President Donald Trump’s recent threat to impose 30% tariffs on imports from the EU and Mexico starting August 1.

Tajani stated in an interview with Il Messaggero that the EU’s planned tariffs could be expanded if no deal is reached. Despite this, he remains hopeful that a resolution is still possible. "Tariffs hurt everyone, including the United States," he said, warning that market instability could jeopardize American pensions and savings. Tajani called for a zero-tariff trade zone across North America and Europe.

The European Commission has extended its pause on retaliatory measures until early August, signaling a continued effort to reach a negotiated agreement. However, the EU is also preparing for a breakdown in talks. EU Trade Commissioner Maros Sefcovic emphasized the bloc’s dual strategy of negotiation and preparation. “We prioritize a negotiated solution by the August 1 deadline, but we must be ready for all outcomes, including well-considered, proportionate countermeasures,” Sefcovic said.

These developments come amid renewed tensions in global trade, with Trump targeting key partners. The potential for tariffs raises concerns about escalating protectionism and economic fallout on both sides of the Atlantic. The EU's contingency plan underscores its resolve to defend its trade interests while keeping diplomatic channels open.