Preparing a Strong Response to Trump
Bloomberg reported on June 24 (local time) that the European Union (EU) is planning to impose retaliatory tariffs on U.S. products, including Boeing aircraft, if the United States maintains a 10% base tariff even after concluding a trade agreement with the EU.
EU officials expect that the United States will maintain some tariffs even if the U.S.-EU trade negotiations are concluded. The European Commission has not yet officially announced whether it will take retaliatory measures if tariffs are maintained.
However, European Commissioner Stephane Sejourne told Bloomberg, "If the United States insists on an asymmetrical negotiation, retaliatory measures and a rebalancing will be necessary in several key sectors," adding, "This includes the scenario in which the 10% tariff remains in place as a result of the negotiations."
On the same day, the Financial Times (FT) also reported, citing two EU officials, that Bjoern Seibert, chief of staff to European Commission President Ursula von der Leyen, told EU ambassadors after the Group of Seven (G7) summit that the possibility of a strong response from the EU could help persuade the United States. He conveyed to the ambassadors that President von der Leyen is prepared to threaten retaliation to secure a better deal.
German Chancellor Friedrich Merz also stated in a speech to the Bundestag that day, "If an agreement is not reached, we are prepared to use a variety of tools," and added, "We are capable of protecting our interests, and we will do so."
In addition to the 10% base tariff, the United States has imposed item-specific tariffs on European automobiles, steel, and aluminum. The U.S. is also considering expanding tariffs to pharmaceuticals, semiconductors, and aircraft. One of the sectors of particular concern for the EU is the aviation industry. Commissioner Sejourne argued that since the EU's Airbus is subject to a 10% base tariff, the EU should not be forced into unfair competition with U.S. Boeing.
The EU is accelerating negotiations with the United States in an effort to reach an agreement by July 9, the date when the mutual tariff suspension expires. President Trump has previously threatened to impose a 50% mutual tariff on the EU if a breakthrough in trade talks is not achieved by July 9.
Bloomberg reported that the majority opinion within the EU is that even if a tariff agreement is reached, most tariffs, including the 10% base tariff, are expected to remain in place. The United Kingdom, which previously concluded negotiations with the United States, is also subject to the 10% base tariff.
Maros Sefcovic, the EU Commissioner for Trade, said on June 23, "We understand that the United States is negotiating based on the 10%," and added, "We are preparing rebalancing measures to protect European companies and workers in case we fail to reach a fair and negotiated solution."
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