Latest Response! European Union Passes €93 Billion Tariff Countermeasure Plan Against the US

According to CCTV News, on July 24 local time, the correspondent of China Media Group learned thatOn the same day, the EU member states voted to pass a measure to impose countervailing duties on U.S. products totaling 93 billion euros.

EU (file photo)

According to reports, an EU Commission spokesperson stated on July 23 that the EU plans to merge two retaliatory tariff lists targeting US exports into a single unified list totaling 93 billion euros. The EU obtained member state approval for this earlier in April.U.S. soybeans, motorcycles, jeans, and other goodsThe first round of tariff measures amounting to approximately 21 billion euros was implemented. On July 23, the European Union member states voted on and passed another list valued at approximately 72 billion euros. This list mainly...Involving high-value industrial products such as airplanes, automobiles, and electrical equipment.The formation of two listsThe total amount of the package of retaliatory measures reaches 93 billion euros.。

Previously, the EU and several European national leaders stated that if a satisfactory trade agreement could not be reached with the US before the US tariff measures take effect on August 1, the EU would take countermeasures in response. On July 23, European Commission spokesperson Olof Gill stated that if the negotiations break down, the countermeasures will take effect on August 7.

Recent news continues to emerge from the trade negotiations between Europe and the United States. This tariff game, which is crucial to the global supply chain landscape and economic development, is attracting significant attention! Specs World outlines the background, impact, and reactions from various parties regarding this event as follows:

EU integration retaliation list to strengthen negotiation position

Olof Gill, spokesperson for EU trade, said on Wednesday that the EU has merged two previous retaliatory lists targeting US goods worth €21 billion and €72 billion into a single list worth €93 billion, covering products such as bourbon whiskey, airplanes, soybeans, and auto parts. Gill emphasized that this move makes the retaliatory measures "clearer, simpler, and tougher," and is expected to take effect on August 7, although the EU may extend the suspension period. This list is a response to Trump's March steel and aluminum tariffs and the recent threat of a 30% tariff, aiming to force the Trump administration to compromise by precisely targeting key US industries.

Trump's tariff threats escalate, casting uncertainty over negotiation prospects.

The Trump administration recently announced a 15% tariff agreement with Japan and has now turned its attention to the European Union, threatening to impose a 30% tariff on EU goods if no agreement is reached by August 1. The EU has prioritized negotiations, attempting to secure concessions by increasing purchases of American liquefied natural gas or soybeans, but recent talks have stalled. Šefčovič stated that Trump’s “tariff game” threatens the world’s largest trading relationship, with daily trade in goods and services exceeding $5 billion. The Financial Times pointed out that internal coordination within the EU faces challenges: France and Italy are concerned about the impact on alcohol exports, while Germany’s automotive and pharmaceutical industries hope to avoid a full-scale trade war.

Economic and Political Impact Analysis

Tensions in US-European trade relations could have far-reaching effects on the global economy. In 2024, the US trade deficit with the European Union reached $235 billion, which Trump regards as a bargaining chip. However, Goldman Sachs economists believe the actual tariffs may be below 30%, leaving Trump with room for negotiation. If the EU’s retaliation list is implemented, it will drive up costs for US companies, with Boeing and agricultural states likely to suffer heavy losses. According to the European Central Bank, a 30% tariff could reduce the eurozone’s economic growth rate by 0.5 percentage points. JPMorgan Chase (July 20, 2025) warns that if the trade war escalates, global markets could plunge into turmoil.

Tough responses from European political figures

EU leaders expressed a tough stance on Trump's threats while emphasizing negotiation as a priority.

European Commission President Ursula von der Leyen: "We are committed to dialogue, but the EU is ready to decisively defend its own interests." She stated that the anti-coercion tool would only be used in "special circumstances," demonstrating a cautious attitude.

German Chancellor Friedrich Merz: "The German economy cannot withstand the impact of a 30% tariff. We must demonstrate strength while seeking solutions." He supports a tough retaliatory response from the EU.

French President Emmanuel Macron: "The European Union cannot passively accept attacks; anti-coercion instruments are one of the options." He called for a swift response but to avoid a full-scale trade war.

Italian Prime Minister Giorgia Meloni: "A trade war is not beneficial to either side; the EU should safeguard the Western alliance through negotiations." She is inclined toward compromise.

Tough rhetoric from American politicians

The Trump administration took a tough stance on trade issues, attempting to pressure the European Union through high tariffs.

U.S. President Donald Trump: "If the EU retaliates, we will increase tariffs to over 30% to protect American interests." He views tariffs as a key tool in negotiations.

White House economic advisor Kevin Hassett: "The EU's proposal is insufficient to meet U.S. demands; tariffs are a realistic option." He hinted that greater concessions are needed in the negotiations.

Investment Banks and Media Commentary

Goldman Sachs: "The EU's expanded merger list strengthens its negotiating position, and Trump may compromise with lower tariffs to avoid a full-scale trade war."

Bruegel think tank: "The EU may join forces with Canada and Mexico to pressure the United States and force Trump to soften his stance."

The Wall Street Journal: "German officials stated, 'If they want war, we will oblige,' indicating a hardening stance within the European Union."

Reuters: "The EU is considering using anti-coercion tools to restrict U.S. companies' access to public procurement and financial markets, with increasing support from Germany."

Bloomberg: "The EU may seek concessions by increasing imports of U.S. liquefied natural gas, but internal coordination remains divided."

Prospects and Potential Risks

(The above is comprehensively compiled from CCTV News and Hui Tong Finance.)