BRUSSELS, Jul 14 (Alliance News):The European Union has drawn up a tariff retaliation package worth €21 billion ($24.52 billion) targeting US goods, as trade tensions with Washington threaten to escalate into a full-blown economic conflict.
Italian Foreign Minister Antonio Tajani confirmed the preparation of the countermeasures in an interview published Monday, adding that the EU remains open to dialogue but is prepared to act if talks collapse.
The announcement follows a sharp warning from former US President Donald Trump, who on Saturday threatened to impose a 30% tariff on imports from the European Union and Mexico starting August 1. Trump’s statement comes after weeks of unsuccessful trade negotiations with key US partners.
Tajani emphasized that tariffs would damage all parties involved, particularly the United States. “Tariffs hurt everyone, starting with the United States,” he said. “If stock markets fall, that puts at risk the pensions and the savings of the Americans.”
He added that the EU’s €21 billion tariff plan could be followed by further measures if a deal with Washington is not reached.
In a broader appeal, Tajani called for renewed economic stimulus in Europe, suggesting that the European Central Bank consider a fresh round of quantitative easing and additional interest rate cuts to support the eurozone economy.
Meanwhile, the EU has extended its suspension of counter-tariffs until early August in hopes of reaching a negotiated solution.
German Chancellor Friedrich Merz announced that he would coordinate efforts with French President Emmanuel Macron and European Commission President Ursula von der Leyen to resolve the brewing trade crisis.
European Trade Commissioner Maros Sefcovic expressed cautious optimism on Monday, stating that both sides were “approaching a positive outcome,” but warned that the imposition of a 30% tariff would “practically eliminate trade” between the two economic blocs.
The EU is urging a move toward “zero tariffs” and an open-market framework involving Canada, the US, Mexico, and Europe. As the August 1 deadline approaches, both Brussels and Washington are under growing pressure to strike a deal and avoid a major disruption to global trade.
