Sefcovic warns new US tariffs would severely disrupt €4.4 billion daily trade

The European Union’s trade chief, Maros Sefcovic, expressed hope on Monday that a trade agreement with the United States could still be reached before the August 1 deadline, despite President Donald Trump’s threat to impose 30% tariffs on EU and Mexican imports.

Sefcovic, who is leading negotiations on behalf of the EU’s 27-member states, said the talks had come close to a deal. However, Trump’s renewed threat had cast serious uncertainty over the process. “A 30% tariff would make it almost impossible to continue trade, which currently amounts to €4.4 billion ($5.15 billion) per day,” he said.

He added that the EU is preparing for “all outcomes,” including the possibility of retaliatory measures, but reiterated that an agreement remains the preferred path. “The uncertainty caused by these unjustified tariffs cannot persist indefinitely,” Sefcovic told reporters ahead of talks with EU ministers in Brussels, according to dw.com

The tariff threat has sparked debate among EU members about the appropriate response.

France’s Trade Minister Laurent Saint-Martin urged a firm reaction, insisting there should be “no taboos” when it comes to reprisals. “If you hold anything back, you are not strengthening your position,” he said. “We need to rethink our strategy in light of this escalation.”

Italy’s Foreign Minister Antonio Tajani confirmed that the EU had prepared a €21 billion ($24.5 billion) list of counter-tariffs on US goods if no resolution is reached.

Meanwhile, Denmark’s Foreign Minister Lars Lokke Rasmussen, whose country holds the rotating EU presidency, said, “We want peace, but if you want peace, you have to prepare for war.”

German Chancellor Friedrich Merz stated that he would work “intensively” in the coming weeks to help finalize a deal. Speaking to public broadcaster ARD, Merz said the stakes were high: “If tariffs are imposed, it would undermine much of Germany’s economic policy and severely damage our export-driven economy.”

He and French President Emmanuel Macron have both expressed support for heavy counter-tariffs, but only if the US moves forward with its threat after August 1.

In a gesture of goodwill, European Commission President Ursula von der Leyen postponed a retaliatory package that had been scheduled to go into effect Monday. The measures were originally drafted in response to earlier US tariffs on steel and aluminum.

However, diplomats say a new set of countermeasures — specifically tied to the 30% tariff threat—will be presented to EU trade ministers soon.