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Europe readying 'countermeasures' if tariff deal with US crumbles

Monday, 02 June 2025 2:34 PM [ Last Update: Monday, 02 June 2025 2:34 PM ]

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The European Union has been preparing "countermeasures" in case the tariff deal with the United States falls apart.

EU Commission spokesperson Olof Gill said at a regular press conference in Brussels on Monday that "the EU is prepared to impose countermeasures" if trade negotiations fail between the two sides.

Since Donald Trump's return to the White House in January, his barrage of tariffs against US trade partners has rattled global market.

US trade partners face between 11 percent to more than 100 percent tariffs on imported products. However, the majority of Trump's tariffs were paused for 90 days in the wake of US stock market volatility.

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US President Donald Trump fires new tariff threats targeting smartphone manufacturers, particularly Apple, and the European Union, causing jitters in world markets.

Meanwhile, Trump and EU Commission President Ursula von der Leyen agreed last week to “accelerate talks” between Brussels and Washington.

Brussels claims its pushing hard for a trade deal with the Trump administration to avoid a 50 percent tariff on imported goods.

It could buy more liquefied natural gas, weapons and munitions from the US, as well as lower duties on American cars, but it isn't likely to budge on calls to scrap the value-added-tax or open up the EU to American beef.

Brussels has proposed to the Americans a “zero for zero” outcome in which tariffs would be removed on both sides’ industrial goods, including cars.

The Trump administration has refused the offer; however, EU officials claim the proposal is still on the table. “In the event that our negotiations do not lead to a balanced outcome, the EU is prepared to impose countermeasures, including in response to this latest tariff increase," Gill said.

The EU is finalizing an “expanded list of countermeasures” that would “automatically take effect on July 14th or earlier," Gill added.

Trump's 90-day suspension of foreign tariffs ends on July 14.

Trump’s tariffs spark fears of price hikes, product shortages in US: Report

Anti-China tariffs put in place by the Trump administration have sent jitters into the US retail market, triggering fears of product shortages and price hikes.

However, about halfway through that grace period, Trump announced a 50 percent tariff on steel imports, stoking fear in markets that big-ticket purchases from cars to washing machines to houses could see major price increases.

Common consumer products such as soup and nuts were also feared to show price increases due to steel's use in packaging.

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