The EU plans to impose 30% tariffs on US exports worth a total of around 100 billion euros ($117 billion) if the US does not abandon its intention to introduce such tariffs after August 1.
Points of attention
- The EU is considering imposing 30% tariffs on US exports worth around 100 billion euros in response to President Trump's threat of new tariffs on EU goods.
- Germany is contemplating the use of the Anti-Coercion Instrument (ACI) as an emergency measure in case of further escalation in trade tensions with the US.
- The EU is prepared to impose sanctions on American exports, including Boeing aircraft, automobiles, and bourbon whiskey, if the US proceeds with its planned tariffs after August 1.
EU plans to impose 30% tariff on exports from the US
This is a response to President Donald Trump's threat to impose new tariffs on most goods from the EU.
A European Commission spokesman said the first wave of countermeasures would combine already approved duties worth €21 billion and additional tariffs worth €72 billion into a single package.
Under threat are American exports of manufactured goods, including Boeing aircraft, automobiles, and bourbon whiskey.
The tariffs are set to take effect next month, but only if the US begins imposing its tariffs after August 1 and no agreement is reached between the parties.
According to the publication's sources, negotiations between the EU and the US will continue in August with the hope of avoiding escalation.
After the release of news about possible tariffs, the euro fell to $1.1723, and German bonds partially recovered their positions.
Amid the escalation of negotiations, Germany is even considering the possibility of using the so-called Anti-Coercion Instrument (ACI) — the EU's most powerful trade mechanism.
The ACI allows the European Union to impose sanctions against countries that violate trade rules, including tariffs on American technology giants, restrictions on investment and access to the European market.
However, the launch of this instrument is only possible with the support of a qualified majority of EU member states and is currently considered a last resort.
Most EU countries are currently leaning towards continuing negotiations with Washington to find a compromise and avoid an escalation of the trade war, which could harm the global economy.
However, if the situation escalates after August 1, the EU is ready to take decisive action using the ACI.
Trump previously announced his intention to impose a 30% tariff on most goods imported from the European Union and Mexico starting August 1.
