EU warns of €72 bln retaliatory tariffs amid escalating trade tensions with US

The European Union remains committed to reaching a trade agreement with the United States, despite renewed threats from President Donald Trump to impose a 30 percent tariff on EU imports.

However, officials warn that the bloc’s “patience is running out”, and preparations are underway for a €72 billion retaliatory tariff package if negotiations fail.

Following a meeting of EU trade ministers in Brussels on Monday, European Trade Commissioner Maros Sefcovic confirmed that the European Commission has submitted a detailed list of potential tariffs targeting U.S. goods worth €72 billion. These measures would be enacted if Washington proceeds with its tariff threat, according to news agencies.

“We are negotiating first, but we are preparing at the same time,” Sefcovic said, adding that all 27-member states are united in this approach.

Trump’s threat comes after months of stalled negotiations between Brussels and Washington. He has given the EU until August 1 to reach an agreement or face sweeping tariffs.

While EU trade ministers reaffirmed their desire for a deal, they also stressed their readiness to respond decisively.

“There was a completely unified position among the ministers that we must be ready to respond if necessary,” said Danish Foreign Minister Lars Løkke Rasmussen, whose country currently holds the EU’s rotating presidency.

In addition to the €72 billion list, the EU has also prepared a separate package of tariffs on €21 billion worth of U.S. goods, intended as a direct response to earlier U.S. tariffs on European steel and aluminum.

However, the bloc announced Sunday that it would temporarily postpone implementation of those measures in a final push to reach a compromise.

As the August 1 deadline approaches, the escalating trade standoff raises concerns about a potential transatlantic trade war, with economic repercussions for industries on both sides.