The European Union has intensified its efforts to avoid a trade conflict with the United States after President Donald Trump announced plans to impose 30% tariffs on most EU imports from 1 August. European trade ministers meeting in Brussels on Monday unanimously condemned the move as “absolutely unacceptable” and pledged unity in responding to the threat.
The proposed tariffs, which would also target Mexico, came as a surprise over the weekend, disrupting what European officials had considered productive trade negotiations. The announcement has far-reaching implications for transatlantic supply chains and consumer prices, with key EU exports such as French cheese, Italian leather goods, German electronics, and Spanish pharmaceuticals expected to be affected.
European Trade Commissioner Maroš Šefčovič stated that negotiations with Washington would continue, but the EU must be “prepared for all outcomes.” Speaking after the ministerial meeting, he said, “It was very obvious from the discussions today – the 30% is absolutely unacceptable.” He confirmed that the European Commission had shared with member states a second package of countermeasures, targeting approximately €72 billion worth of U.S. imports.
“This does not exhaust our toolbox,” Šefčovič added, signalling the bloc’s readiness to escalate if talks fail. “Every instrument remains on the table.”
In a calculated move aimed at keeping the door open for diplomacy, the EU has temporarily suspended a first tranche of retaliatory tariffs, originally due to come into effect on 15 July. European Commission President Ursula von der Leyen confirmed that this delay would provide time to pursue a negotiated settlement, saying Trump’s letter “shows that we have until the first of August.”
Danish Foreign Minister Lars Løkke Rasmussen, whose country currently holds the rotating EU presidency, said ministers were determined to act jointly. “The EU remains ready to react, and that includes robust and proportionate countermeasures if required,” he told reporters. “There was a strong feeling in the room of unity.”
The Commission’s two-tier response now includes the suspended €21 billion package and the proposed €72 billion escalation, both of which would be coordinated across all 27 EU member states.
Trump has justified the tariffs as part of his administration’s effort to correct what he calls unfair trade practices. Earlier this year, he imposed levies on a wide range of countries, including allies, before announcing a temporary 90-day suspension to allow space for bilateral deals. As that grace period ends, Trump has renewed his threats, issuing formal letters to the EU and Mexico. The U.S. President has, however, left the door open to further delay, suggesting implementation might be postponed again by “just a few more weeks.”
The American Chamber of Commerce to the European Union warned that the tariffs risk creating “damaging ripple effects across all sectors of the EU and U.S. economies,” and welcomed the EU’s restraint in holding off immediate countermeasures.
EU officials were taken off guard by Trump’s latest escalation, having indicated just last week that a trade deal was close to being finalised. According to European diplomats, negotiators had been working under the assumption that the announcement of an agreement was imminent.
In parallel with efforts to defuse tensions with Washington, Brussels is broadening its trade agenda. Šefčovič noted the EU is “doubling down on efforts to open new markets,” citing a recently signed economic partnership agreement with Indonesia as an example. Further trade initiatives are underway with South Korea, Japan, Vietnam, and Mercosur. A high-level EU delegation is expected to visit Beijing later this month, while Šefčovič is also scheduled to meet his UAE counterpart in the coming days.
Von der Leyen, speaking alongside Indonesia’s President in Brussels on Sunday, framed the EU’s global trade approach as a response to geopolitical volatility. “When economic uncertainty meets geopolitical instability, partners like us must come closer together,” she said.
Nevertheless, the immediate priority remains securing a resolution with the United States before the 1 August deadline. Šefčovič, while committed to dialogue, reiterated the bloc’s resolve. “I cannot imagine walking away without genuine effort,” he said. “But the uncertainty caused by unjustified tariffs cannot persist indefinitely. We must prepare for all outcomes, including, if necessary, proportionate countermeasures to restore balance in our transatlantic relationship.”
Read also:
Trump Escalates Trade Tensions with Threat of 30% Tariffs on EU and Mexico
