The European Union has readied a list of tariffs worth €21 billion ($24.52 billion) on US goods in case trade negotiations collapse, Italian Foreign Minister Antonio Tajani revealed in a newspaper interview on Monday. The warning comes after US President Donald Trump threatened to impose a 30% tariff on imports from Mexico and the EU starting August 1, following stalled talks with key trading partners. Tajani emphasized that the EU remains open to dialogue but is prepared to retaliate if necessary.
Tajani also urged the European Central Bank (ECB) to consider a new quantitative easing program and further interest rate cuts to support the eurozone economy. Meanwhile, the EU has extended its suspension of countermeasures against US tariffs until early August, hoping for a negotiated resolution. However, Tajani warned that if talks fail, the bloc could impose a second wave of tariffs in addition to the initial €21 billion package.
“Tariffs hurt everyone, starting with the United States,” Tajani said, stressing that market instability could jeopardize American pensions and savings. He advocated for a “zero tariffs” policy and an open market between the US, Canada, Mexico, and Europe. German Chancellor Friedrich Merz echoed the need for diplomacy, pledging close cooperation with French President Emmanuel Macron and EU Commission chief Ursula von der Leyen to de-escalate tensions.
Despite the standoff, European Trade Commissioner Maros Sefcovic expressed cautious optimism, stating that Washington and Brussels were nearing a mutually beneficial agreement. However, he warned that Trump’s proposed 30% tariff would severely disrupt transatlantic trade. With the August deadline looming, both sides are under pressure to avert a full-blown trade war that could harm economies on both sides of the Atlantic.