The European Union is preparing measures to response to the US potentially rigid trade policy in the event of a failure to negotiate with the Donald Trump administration. This was reported by Financial Times with reference to sources in European diplomatic circles.
According to the publication, Donald Trump has strengthened the requirements in negotiations with the EU, proposing to set a minimum duty of 15% to 20% for all European goods. Separately, he wants to keep a 200 percent duty on Europe imported from Europe. The US side also considers the possibility of introducing mutual tariffs more than 10%, even in the case of an agreement.
In response, several scenarios are actively preparing in Brussels. European diplomats do not rule out that in the case of Washington's perseverance against increased duties, the EU will have no other choice than to take mirror measures.
Among the possible measures are duties on American products, including chicken, jeans, Boeing and Bourbon planes. Some of them may come into force on August 6. The possibility of introducing taxes on digital services and income from online advertising, which will mainly relate to large American technological companies, is also considered.
The European Union has not yet implemented these sanctions, expecting the results of negotiations. However, as noted in the media, the border of patience is exhausted. EU representatives have repeatedly emphasized that they do not seek escalation, but they are preparing for it if the US does not change the approach.
For its part, the US remains the largest EU trading partner: the US market accounts for about 20% of the block exports. Trade exacerbation can significantly affect both economies, creating additional tension in international relations.
