The EU's Potential Trade Retaliation: A Standoff with the U.S.

The European Union is contemplating a range of counter-measures against the United States due to stalled trade agreement negotiations. The EU, dissatisfied with President Trump's tariff threats, is considering activating its 'anti-coercion' measures, targeting U.S. services and limiting access to public tenders in the absence of a deal.

The European Union is preparing a set of counter-measures against the United States as prospects for a favorable trade agreement diminish. According to EU diplomats, some members, Germany included, are considering employing broad 'anti-coercion' measures targeting U.S. services or restricting access to public tenders if no deal is reached.

The European Commission appeared on track for a deal which included a 10% U.S. tariff on most exports, with some exceptions. However, hopes have dwindled following President Trump's threat of a 30% tariff by August 1 and recent dialogues between EU Trade Commissioner Maros Sefcovic and U.S. officials.

Sefcovic warned that a 30% tariff would significantly hinder transatlantic trade. He briefed EU envoys on Friday regarding U.S. counterparts proposing varied solutions, but uncertainty remains over what might be acceptable to Trump. Discussions include limiting U.S. firms' access to EU markets, financial services, and public procurement worth 2 trillion euros annually.

(With inputs from agencies.)