EU announces preparation to ‘stomach’ uneven agreement with Trump
(MENAFN) European Union officials are reportedly prepared to accept an unbalanced trade agreement that benefits the United States in an effort to avoid a looming tariff dispute ahead of a deadline set by President Donald Trump, Bloomberg reported on Monday, citing sources familiar with the matter.
Talks between Brussels and Washington have been underway since early April, following Trump’s announcement of his “Liberation Day” economic policies aimed at protecting American manufacturers. These measures include a sweeping 10% tariff on all EU imports and those from most other trading partners. Although these tariffs have been temporarily suspended during negotiations, Trump has warned they could increase to 30% if a deal isn’t reached by August 1. These new duties would come on top of existing tariffs — 50% on steel and aluminum and 25% on autos — which the US imposed earlier this year.
Amid growing fears of a no-deal scenario, the EU is preparing potential retaliatory measures, Bloomberg said. EU representatives could meet as early as this week to draft a formal response should the talks collapse, according to sources.
Trump’s hardened position on tariffs ahead of the looming deadline has put Brussels on high alert for a possible trade confrontation. French Finance Minister Eric Lombard acknowledged the difficulty of the talks, stating that if a balanced agreement cannot be achieved, the EU will consider countermeasures to protect its interests.
The EU has already authorized €21 billion ($24.5 billion) in retaliatory tariffs targeting US exports like soybeans, poultry, and motorcycles, particularly from politically sensitive states like Louisiana, the home of House Speaker Mike Johnson. Additionally, the bloc has drafted €72 billion in further tariffs on goods such as Boeing aircraft, cars, and bourbon in case Trump enacts broader or auto-specific tariffs. Beyond tariffs, EU officials are also considering restrictions on exports and government procurement.
So far, Washington has largely avoided significant retaliation while collecting a record $64 billion in customs duties during the second quarter of 2025, according to US Treasury figures.
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