The European Union is preparing to hit back with €21 billion ($24.5 billion) in retaliatory tariffs on U.S. goods if a last-minute trade deal isn’t reached, EU officials warned Monday.
Italy’s Foreign Minister and Deputy Prime Minister Antonio Tajani, speaking to Il Messaggero, said the bloc remains open to negotiations but won’t hesitate to respond forcefully if President Donald Trump’s newly announced tariffs take effect on August 1.
“Our goal is zero duties and an open market between Canada, the United States, Mexico, and Europe,” Tajani said. “But if talks fail, we are ready.”
Why It Matters
The escalation threatens to disrupt nearly $1 trillion in annual trade between the U.S. and the EU, adding fresh strain to an already fragile global economy. Trump’s decision to impose 30% tariffs on imports from the EU and Mexico—citing trade deficits and national security concerns—has reignited transatlantic tensions and raised fears of a full-blown trade war.
The EU’s countermeasures, if enacted, would hit major sectors including automobiles, agriculture, and pharmaceuticals—potentially driving up consumer prices and destabilizing supply chains across both continents.
What Happened
On Saturday, Trump announced a sweeping 30% tariff on all EU and Mexican imports, effective August 1. He pointed to the EU’s $235.6 billion trade surplus with the U.S. last year as justification, calling it “a threat to our economy and national security.”
In response, EU leaders postponed immediate retaliation, giving negotiations until the end of July. But European Commission President Ursula von der Leyen made clear that the bloc won’t wait forever.
“We are ready to work toward an agreement by August 1,” she said. “But we will take all necessary steps to protect EU interests—including proportionate countermeasures.”
As a goodwill gesture, the EU has suspended planned tariffs on U.S. steel and aluminum, originally set to take effect Tuesday.
Tensions Rise
In a post on Truth Social, Trump warned the EU against retaliation:
“If you raise tariffs, we’ll add that amount on top of the 30%.”
Italy’s Tajani also floated the possibility of a second wave of tariffs and called on the European Central Bank to consider stimulus measures, such as bond-buying, to shield EU economies from the impact of a prolonged dispute.
What People Are Saying
- Antonio Tajani, Italian Foreign Minister: “Tariffs hurt everyone—starting with the United States. If markets crash, American pensions and savings are at risk.”
- Ursula von der Leyen, EU Commission President: “These tariffs would disrupt vital supply chains, harming businesses, consumers, and patients on both sides of the Atlantic.”
- French President Emmanuel Macron, via X: “[Trump’s move] follows weeks of serious negotiation. The EU must now act with unity and speed to defend its interests if no deal is reached by August 1.”
What’s Next
With just over two weeks until Trump’s tariffs take effect, negotiators face a tight deadline. EU trade ministers are meeting in Brussels this week to finalize a coordinated response. Tajani suggested that, at minimum, both sides could agree to an interim deal to delay tariffs and buy time for deeper talks.
If no breakthrough occurs, the EU is poised to activate its €21 billion in retaliatory tariffs—potentially setting off the most severe trade clash between the U.S. and Europe in recent history.
