BRUSSELS (Realist English). The European Union has greenlit a €93 billion ($109 billion) package of retaliatory tariffs on US goods, responding to Washington’s threat to impose 30% duties on EU imports starting August 1. While talks on a potential trade deal continue, uncertainty remains high due to the unpredictability of US President Donald Trump’s decision-making.
The European Commission has merged two proposed tariff lists into one, targeting a wide range of American products—from food and beverages to clothing and machinery. Sources told CNBC that the duties could match the US’s 30% rate.
EU member states approved the measures on Thursday, paving the way for their implementation shortly after the US deadline.
Brussels is also considering deploying its Anti-Coercion Instrument (ACI), dubbed the “trade bazooka.” This tool allows the EU to impose import/export restrictions and market access barriers in response to economic pressure from third countries.
Though seen as a last resort, experts suggest the ACI could be activated if the US ignores the EU’s initial countermeasures.
Carsten Brzeski, ING’s global head of macro, expects a “tit-for-tat” response from the EU—targeting key US exports like motorcycles, cars, alcohol, and apparel—but not an all-out trade war due to internal divisions.
Alberto Rizzi of the European Council on Foreign Relations notes that while support for a strong EU response is growing, the bloc may hold off on using the ACI unless tensions escalate further.
With just days left before the US deadline, the coming week will determine whether the two sides reach a deal or plunge into another trade conflict. For now, Brussels is preparing for both scenarios.
