EU Prepares Countermeasures as US Steel Tariffs Complicate Trade Talks

The European Union has announced its readiness to implement retaliatory measures in response to the potential collapse of the ongoing trade agreement negotiations with the United States. This move comes after the Trump administration's unexpected imposition of tariffs on steel, which has disrupted global markets and complicated broader trade discussions between Brussels and Washington.

During a press conference in Brussels, European Commission spokesperson Olaf Gil stated that Commission President Ursula von der Leyen and U.S. President Donald Trump had agreed to accelerate negotiations on a potential agreement. However, Gil emphasized that if these trade talks fail, the EU is prepared to expedite the development of defensive measures. "If our negotiations do not result in a balanced outcome, the EU is ready to take countermeasures, including in response to the U.S.'s latest tariff actions," Gil said.

The EU is in the process of finalizing an "expanded list of countermeasures" that will automatically come into effect on or before July 14. This date marks the end of a 90-day tariff suspension period agreed upon by the two economic giants to provide a buffer for negotiations. Halfway through this period, Trump announced a 50% tariff on imported steel, adding to the complexity of the situation.

Since returning to the White House, Trump has implemented an unprecedented series of tariff policies, frequently threatening and then canceling tariffs. EU officials are working diligently to reach a trade agreement to avoid the imposition of a 50% tariff on imported goods. The EU may consider increasing purchases of liquefied natural gas and defense products from the U.S. and reducing car tariffs, but it is unlikely to concede on demands to eliminate value-added tax (similar to sales tax) or open its market to U.S. beef.

The EU had previously proposed a "zero tariffs for zero tariffs" plan, suggesting that both sides eliminate tariffs on industrial products, including cars. Although Trump did not respond to this proposal, EU officials maintain that it remains valid. The announcement of a 50% tariff on steel imports has raised concerns about potential price increases for a wide range of goods, from cars and washing machines to housing materials. These metals are widely used in packaging, which could affect the prices of various consumer products, from canned soup to nuts.