EU Signals Retaliatory Tariffs on U.S. Goods Ahead of Trade Deadline

On June 24, according to a report by the Financial Times, Björn Seibert, Chief of Staff to European Commission President Ursula von der Leyen, stressed that the European Union must reach an internal consensus before the U.S.-EU trade negotiation deadline on July 9. He also highlighted the importance of preparing supplementary retaliatory tariffs as a “credible threat.” President von der Leyen is reportedly prepared to escalate counteractions to strengthen the EU’s negotiating position, potentially including tariffs on €95 billion worth of U.S. goods and other measures targeting services, such as taxing U.S. tech firms and restricting their participation in public tenders.

Von der Leyen reiterated that the sovereign decision-making rights of EU institutions and member states are “untouchable” in dealings with the United States. German Chancellor Merz expressed Germany’s readiness to support more forceful responses against the U.S., adding that if a deal is not reached, Berlin will take a series of steps to safeguard its national interests, warning that any escalation would be damaging for all sides.

Presently, the United States levies a 50% tariff on steel and aluminum from the EU, 25% on cars, and a 10% general tariff on most other products. President Donald Trump has signaled that, should talks stall, the U.S. may raise tariffs on EU imports to 50%. In reply, the EU has already authorized retaliatory duties of up to 50% on €21 billion in U.S. imports, although implementation has been deferred to July 14 to allow further negotiations.

EU negotiators acknowledge that rolling back the 10% baseline tariff may prove difficult, but they remain focused on seeking reductions in additional levies on specific industries, including steel, aluminum, and automobiles. An EU spokesperson confirmed that internal deliberations on the potential countermeasures are ongoing, and the bloc retains the right to implement those measures should the discussions not yield acceptable outcomes.