Talks in Washington aimed at keeping a 10% tariff on most EU goods have stalled. U.S. President Trump then threatened a big 30% tariff by August 1. That pressure killed hopes for a deal. The EU US tariffs dispute heats up as the EU prepares to raise its own tariffs after a US deal collapses, using billions in planned retaliation and new legal tools.
It’s dusting off a “pause” on tariffs for €21 billion worth of U.S. goods and talking about adding another €72 billion. These could hit everything from bourbon to machinery.
The EU might also use its anti‑coercion tool, which could hit U.S. services or shut them out from EU markets. Germany’s now okay with it, joining France in support.
Some EU leaders worry using this tool is too extreme. Others say it’s needed because U.S. tariffs on steel, aluminium, and cars are already hurting. Meanwhile, German finance officials warn both economies could suffer if things get worse.
EU officials want to keep talking with the U.S., hoping for a calm solution before August arrives. But with protective tools at the ready, they’re braced for more serious retaliation.
Conclusion:
With no deal in sight and powerful tools at hand, the EU is ready to stand firm—hoping diplomacy wins, but acting fast if it doesn’t.
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