A ship-to-shore crane unloads shipping containers at the container port in Frankfurt, Germany, April 10, 2025. /VCG
The European Union's member countries voted on Thursday to approve counter-tariffs on 93 billion euros ($109 billion) of U.S. goods, which could be imposed should the bloc fail to reach a trade deal with Washington, EU diplomats said.
The 27-nation bloc's executive European Commission said on Wednesday its primary focus was to achieve a negotiated outcome with Washington to avert 30 percent U.S. tariffs that U.S. President Donald Trump has said he will apply on August 1.
The Commission said it would press on in parallel with plans for potential countermeasures, merging two packages of proposed tariffs of 21 billion euros and 72 billion euros into a single list and submitting this to EU members for approval.
No countermeasures would enter force until August 7. So far, the EU has held back from imposing any countermeasures, despite Trump's repeated announcements of tariffs, the broadest of which have been postponed. EU member states authorized the first package of countermeasures in April, but these were immediately suspended to allow time for negotiations.
According to EU diplomats, the EU and the U.S. appear to be heading towards a possible trade deal, which would result in a broad 15 percent tariff on EU goods imported into the U.S., mirroring a framework agreement Washington struck with Japan. Trump would still need to take any final decision.
Under the outlines of the potential deal, the 15 percent rate could apply to sectors including cars and pharmaceuticals and would not be added to long-standing U.S. duties, which average just under 5 percent.
There could also be concessions for sectors such as aircraft, lumber as well as some medicines and agricultural products, which would not face tariffs, diplomats said.
Washington does not, however, appear willing to lower its 50 percent tariff on steel.
Experts have warned the U.S.'s tariff hikes could drive major European economies to decouple from the U.S. market.
Gavran Igor, an economic analyst from Bosnia and Herzegovina (BiH), said that Washington is using trade policy as a tool of political coercion. "This is no longer trade policy, but economic aggression," he said.
Igor said once punitive tariffs take effect on August 1, it will disrupt value chains and hurt EU economies, especially for smaller economies.
The analyst said the EU has begun shifting toward a more assertive but diversified trade strategy in a bid to offset the expected losses from a more protectionist United States. Igor believes the long-term solution lies in aligning with stable and predictable partners, particularly in East Asia.
"China stands out, not just for its market scale, but for its economic consistency. Unlike the U.S., where trade policy flips with every administration, China provides planning stability over decades," he said.
(With input from agencies)
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