EU Prepares Strategic Countermeasures to U.S. Tariffs Amid Stalled Negotiations

The European Commission is ready to announce countermeasures against U.S. tariffs if negotiations fail. Trade Commissioner Maros Sefcovic emphasized negotiations are a priority, but EU preparations are underway to respond to potential tariffs on cars and other goods. Currently, U.S. tariffs impact a significant portion of EU exports.

In a critical development, the European Commission, under the direction of Trade Commissioner Maros Sefcovic, plans to reveal detailed countermeasures against U.S. tariffs if ongoing negotiations falter. The announcement is set for Thursday, as articulated by Sefcovic during a news conference in Singapore.

These preparations are part of a broader strategy with a focus on rebalancing measures and crucial discussion points. Sefcovic reiterated the priority of prioritizing negotiations but maintained that the EU must remain prepared for every eventuality, emphasizing no cost too high for a viable agreement.

The situation arises as the EU, facing steep U.S. import tariffs on core goods like steel, aluminum, and autos, braces for expired trade suspensions on July 8. The EU's prior move in April imposed 25% duties on specific U.S. imports; however, their execution hinges on the expiry of the current tariff pause initiated by President Trump.

(With inputs from agencies.)