English media: EU prepares retaliatory tariffs to ensure better trade agreement with Trump.

According to the Financial Times, a senior official has warned that in order for the EU to reach a good deal, it must make a "credible threat" of retaliation in response to the trade war initiated by Trump before the upcoming deadline for negotiations. Two EU officials stated that the Chief of Staff to the President of the European Commission, Selmayr, informed EU ambassadors last week after the G7 summit that a strong response could help persuade President Trump to reduce the high tariffs imposed on the EU. German Chancellor Merkel also hinted that her government would support taking tougher measures. She said on Tuesday, "If no agreement is reached, we are prepared to use various options. We can and will defend our interests." Selmayr informed the ambassadors that the President of the European Commission, Von der Leyen, is prepared to escalate negotiations to secure a better deal. He requested their support for a package of tariffs on US goods worth 950 billion and stated that the European Commission is also preparing measures for the service industry - including taxing US tech companies and restricting American companies from obtaining public procurement contracts. One official said the message being conveyed is, "We need to leverage through a credible rebalancing scheme."