European Union officials are also dusting off two existing tariff packages covering $100 billion in US goods
The European Union is bracing for a trade clash with the US after negotiations over tariff levels broke down.
Washington told EU officials last week that President Donald Trump now wants a baseline tariff of 15% or more on most European goods—far above the 10% level the EU had considered acceptable.
The news shocked Brussels and pushed Germany, traditionally more conciliatory, to align with France’s tougher stance.
EU gears up for countermeasures
With an August 1 deadline looming, EU member states are pressing the European Commission to prepare strong retaliatory measures, including new digital levies and restrictions on US companies’ access to the EU’s public contracts.
Officials are also dusting off two existing tariff packages covering $100 billion in US goods, including bourbon, wine, fruits, vegetables, toys, machinery, sports guns, and more.
Trump has also threatened 30% tariffs and hinted at 100% tariffs on EU pharmaceuticals.
Germany, frustrated by the US stance, now supports the EU’s powerful but unused anticoercion instrument, an economic strategy where the bloc’s 27 countries would restrict investments and trade with America.
Despite escalating tensions, both sides still say a deal is possible—but officials agree time is running out.