EU diplomats said the bloc is considering a wide range of potential retaliatory measures against the United States as the chances of reaching an acceptable trade agreement with Washington diminish.
Diplomats say that a growing number of EU members, including Germany, are now considering a broad package of measures that would allow the bloc to target the US services sector and other sectors if no agreement is reached.
The European Commission, which negotiates trade agreements on behalf of the 27-nation bloc, had appeared on track to reach an agreement that would include a 10% US tariff on most EU exports.
However, those hopes now appear to have been dashed following President Donald Trump’s threat to impose 30% tariffs by August 1 and talks between EU Trade Commissioner Maroš Šefčović and US officials in Washington last week.
Divergent Solutions
European diplomats said that US officials proposed divergent solutions during the meetings, including a base rate that could be much higher than 10%.
“Everyone seemed to have different ideas,” one diplomat said. “No one could tell (Sefcovic) what would actually work with Trump.”
The prospects of easing or eliminating US tariffs of 50% on steel and aluminum and 25% on cars and car parts have diminished.
Consequently, EU diplomats say the general mood among EU member states has changed, and they are more willing to respond, even though a negotiated solution is their preferred option.
The EU has one set of tariffs on US goods worth €21 billion ($24.5 billion), currently suspended until August 6. The bloc has yet to decide on another set of measures on US exports worth €72 billion.
(Reuters)
