BRUSSELS – The European Union is preparing a multi-billion dollar list of retaliatory tariffs against American goods as it braces for a high-stakes trade showdown with the United States. The move comes amid escalating commercial tensions and a looming August 1 deadline imposed by Washington for a new trade deal, after which the U.S. has threatened to impose duties of up to 30% on EU imports.
In a dual-strategy approach, Brussels is simultaneously engaging in last-ditch negotiations while finalizing a powerful response should talks fail. The EU has made it clear that while it prefers a negotiated settlement, it will not hesitate to protect its economic interests with "swift and proportionate" countermeasures.
The Heart of the Dispute
The latest flare-up in the transatlantic trade relationship stems from the "America First" trade policy of the Trump administration, which has repeatedly cited trade imbalances as justification for imposing steep tariffs. Throughout 2025, the U.S. has introduced or threatened significant duties on key European sectors, including steel, aluminum, and automobiles, arguing such measures are necessary to protect American industries and jobs.
EU Trade Commissioner Maroš Šefčovič has described the threatened 30% US tariff as a measure that would be "devastating" to the €1.7 trillion transatlantic trade relationship and would "make current trading conditions almost impossible."
A Two-Track Strategy: Negotiation and Retaliation
Faced with the August 1 deadline, the EU is pursuing two paths:
The Negotiation Path: Officials in Brussels are in constant contact with their U.S. counterparts, hoping to broker a compromise. A potential "Japan-style" deal is reportedly on the table, which would set a baseline tariff of 15% on most goods. This would be a significant de-escalation from the threatened 30% and could even lower existing tariffs on some products, such as cars. However, there is no guarantee that President Trump will approve such a deal.
The Retaliation Path: In a clear signal to Washington, the European Commission has prepared a massive, unified list of countermeasures targeting approximately €93 billion ($109 billion) worth of U.S. goods. This list combines previously drafted tariff plans into a single, powerful package. If triggered, these tariffs would not take effect immediately on August 1 but are scheduled for implementation starting August 7, giving a final, brief window for a resolution.
Sectors in the Crosshairs
A full-blown tariff war would have a profound impact on industries and consumers on both sides of the Atlantic.
EU Exports at Risk: The threatened U.S. tariffs would heavily impact Europe’s automotive sector, machinery, pharmaceuticals, luxury goods, and agricultural products like wine and cheese.
U.S. Goods Targeted by EU: While the full list remains confidential, the EU's retaliatory tariffs are expected to target iconic American products to maximize political pressure. Based on past disputes, this could include Harley-Davidson motorcycles, American whiskey and bourbon, agricultural goods like wheat and orange juice, and blue jeans.
European Commission President Ursula von der Leyen has emphasized that while the EU's preference is a negotiated outcome, the bloc is "fully prepared" for the alternative. As the deadline approaches, businesses across the globe are watching anxiously, hoping that a deal can be reached to avert a costly and damaging trade war between the world's two largest economies.
