EU Warns US Tariffs Could ‘Wipe Out’ Trade as August 1 Deadline Looms
EU Warns US Tariffs Could ‘Wipe Out’ Trade as August 1 Deadline Looms
The European Union has issued a stark warning that its extensive trade relationship with the United States could be “effectively wiped out” if Washington proceeds with its threat to impose a 30% tariff on goods imported from the bloc. EU Trade Commissioner Maroš Šefčovič stated that a tariff at or above 30% would practically prohibit trade, making it “almost impossible” for current trade levels to continue if the new rate is implemented on August 1, as stipulated by US President Donald Trump.
Speaking ahead of an EU ministerial meeting in Brussels, Šefčovič reiterated the EU’s preference for a negotiated settlement, confirming plans to engage with US counterparts. Despite the severe threat, the EU has demonstrated “enormous” patience and creativity in seeking a deal, having previously believed an agreement was within reach. The EU-US trade relationship is substantial, valued at €1.68 trillion ($1.96 trillion) last year in goods and services, representing nearly 30% of global trade.
In preparation for the potential tariffs, the EU announced it would delay planned countermeasures on €21 billion ($25 billion) worth of US exports until early August, allowing more time for negotiations. However, the European Commission has also prepared a proposal for a new round of countermeasures, potentially targeting €72 billion ($84 billion) worth of US goods, signaling a readiness to retaliate if a deal is not reached. Denmark’s Foreign Minister Lars Løkke Rasmussen underscored this sentiment, stating, “If you want peace, you have to prepare for war.” The looming August 1 deadline intensifies the pressure for a resolution to avoid significant economic repercussions on both sides of the Atlantic.
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