By John Meyer, consultant in financial affairs – Eurasia Business News, July 23, 2025. Article no. 1652

The European Union (EU) is preparing to implement 30% tariffs on approximately €100 billion (equivalent to $117 billion) worth of U.S. goods if a trade deal is not reached and the U.S. proceeds with its threat to impose similar tariffs on EU exports after August 1 . These retaliatory measures are designed to match the proposed U.S. tariffs .

The EU’s plan involves combining an already approved list of tariffs on €21 billion of U.S. goods with a previously proposed list covering an additional €72 billion of U.S. products. The U.S. exports that would be affected include industrial items such as Boeing aircraft, U.S.-made automobiles, and bourbon. 

This potential retaliation would impact around one-third of total U.S. goods sent to the EU based on last year’s figures. The tariffs could be ready to take effect in August, contingent on the absence of a deal and the U.S. implementing its tariffs after the deadline.

In addition to tariffs, the EU is also considering activating its “Anti-Coercion Instrument” (ACI) in a “no-deal” scenario . This tool is designed to allow the EU to launch a broad range of retaliatory actions, including new taxes on U.S. tech giants, targeted curbs on U.S. investments, and limiting access to the EU market. 

While some EU member states are pushing for its use, most prefer to wait and see how the situation develops beyond August 1 before progressing discussions further to achieve the required majority for its activation. German officials have indicated willingness to support the activation of the ACI if no deal materializes.

Negotiations between the EU and the U.S. are ongoing, with further talks scheduled. The euro has declined following these reports, and German bonds have trimmed earlier losses, reflecting market reactions to the escalating trade tensions.

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© Copyright 2025 – Eurasia Business News. Article no. 1652