European Union member states on Thursday formally approved a package of retaliatory tariffs targeting €93 billion worth of United States goods, though the European Commission has signalled that a negotiated solution remains within reach.
The decision comes ahead of a looming 1 August deadline set by US President Donald Trump, who has threatened to impose 30% tariffs on EU imports if no agreement is reached.
Despite the vote, the Commission has not yet enacted the countermeasures. If no breakthrough occurs in the coming days, the first stage of the EU’s response will enter into force on 7 August, with additional measures following in September and February. The countermeasures mirror US tariffs both in scale and sectoral coverage, with rates of up to 30% applying to a wide range of American goods including cars, aircraft, car parts, soybeans, poultry, orange juice, steel, aluminium, yachts and bourbon whiskey.
Hungary was the sole member state to vote against the proposal. The list, first drafted in April, merges two packages totalling €21 billion and €72 billion, now combined into a single instrument. According to EU officials, tariffs on soybeans and almonds will be postponed until 1 December.
While the approval by EU member states indicates growing readiness to respond firmly to US measures, Brussels continues to pursue a negotiated solution. “Our focus is on finding a negotiated outcome with the US,” a Commission spokesperson stated on Thursday, adding, “We believe such an outcome is within reach.”
The EU’s effort to secure a deal appears to centre on replicating a model similar to the US–Japan agreement, which saw Tokyo accept a broad 15% tariff on certain exports to avoid harsher measures. A comparable arrangement is under discussion in the EU–US context, though no formal text has yet emerged. According to diplomatic sources, the deal would involve a 15% US tariff applied across key European sectors such as automotive and pharmaceuticals. This would not be in addition to existing baseline tariffs, which currently average around 5% on US imports.
Some exemptions are reportedly being considered, with sectors such as aerospace, lumber, certain pharmaceuticals, and specific agricultural products potentially excluded from the tariff framework. However, the US has shown no sign of willingness to reduce its current 50% duties on European steel, a central point of contention.
While EU diplomats have indicated that an agreement could be close, reactions from Washington remain cautious. The White House has described reports of a draft deal as “speculative”. Trump’s trade adviser Peter Navarro told Bloomberg News that Brussels’ characterisation of the negotiations should be treated “with a grain of salt”.
In Paris, French Finance Minister Eric Lombard and Italian Industry Minister Adolfo Urso both stated they had no knowledge of a draft accord, with Urso stressing that any judgment would have to await the conclusion of formal negotiations.
The Commission, meanwhile, has kept details of its own concessions limited. Unlike Japan, the EU is not believed to be considering a direct investment pledge in the United States. One diplomat said the bloc might consider reductions in its own tariffs — the EU’s current duty on imported vehicles stands at 10% — though no commitments have yet been made public.
In parallel to the tariff strategy, a qualified majority of EU member states now supports activating the anti-coercion instrument, a recently adopted legal mechanism designed to deter economic pressure from third countries. Germany, previously hesitant, has now joined France in supporting the move. The instrument would allow the EU to target US service sectors in the event of further escalation.
The shift in Germany’s position followed a meeting in Paris on Wednesday evening between German Chancellor Friedrich Merz and French President Emmanuel Macron. According to a source close to the Élysée, the two leaders expressed a shared commitment to defend EU interests, while also accelerating preparations for possible countermeasures in coordination with the Commission.
Although US tariffs already cover an estimated 70% of EU exports, the bloc has so far refrained from enacting its own measures, opting instead to preserve space for negotiations. Thursday’s decision does not alter that stance immediately but creates a binding framework for action if no agreement is reached.
With less than a week remaining until the US deadline, the next few days will be critical. Should talks fail, Brussels will move ahead with the first stage of its counter-tariffs from 7 August, in what would mark the most significant deterioration in transatlantic trade relations in over a decade.
