European Union leaders are currently finalizing a response plan to counter U.S. tariffs initiated by President Trump. If negotiations fail, they may impose tariffs on American imports exceeding $100 billion. Despite having prepared retaliation strategies, the EU has historically opted for dialogue. Previously, they planned to enact tariffs on American goods worth approximately €21 billion ($25 billion), which were suspended as an act of goodwill following Trump’s change of approach to tariffs.
Recent developments saw Trump announcing a 30 percent tariff on EU imports, prompting the bloc to once again delay the proposed retaliatory tariffs. EU officials, however, have been steadfast in their commitment to a strong counter-response, suggesting they have a second list of U.S. goods targeted for tariffs worth €72 billion ($84 billion) including high-profile items like Boeing aircraft and Kentucky bourbon.
The dilemma facing the EU is clear; while they prefer a negotiated settlement to avoid a trade war, they recognize that previous discussions haven’t yielded results. Many EU officials believe that showing strength may be essential to engage effectively with the U.S. administration moving forward in these turbulent trade negotiations.
