"EU to Impose Matching 30% Tariff on US in Case of No-Deal"

Bloomberg News reported on July 23 (local time) that the European Union (EU) is planning to impose a 30% retaliatory tariff on imports from the United States if tariff negotiations with the US break down.

Citing sources, the outlet stated that US-made products, including aircraft, automobiles, and bourbon whiskey, would be subject to a 30% tariff?the same reciprocal rate that President Donald Trump of the United States has warned the EU about.

Previously, the EU had prepared lists of products subject to retaliatory tariffs in response to US steel and aluminum tariffs, amounting to 21 billion euros (33.9 trillion won), and for automobiles and reciprocal tariffs, totaling 72.1 billion euros (116.3 trillion won), and is currently negotiating with the US. Aircraft, automobiles, and bourbon whiskey are included in these lists.

The European Commission announced on this day that it would combine the two retaliatory tariff packages into one and seek approval from member states. However, Bloomberg reported that the retaliatory measures would only be implemented if negotiations end in a "no deal" and the US imposes reciprocal tariffs as previously announced starting next month.

President Trump previously notified the EU in a letter sent on July 11 that he would raise the reciprocal tariff rate from the current 20% to 30%, and that this would take effect from August 1 if negotiations fail.

The EU has been negotiating to lower the reciprocal tariff rate to 10%, which corresponds to the US "base tariff," and to reduce or eliminate tariffs on certain key products such as aircraft, automobiles, and wine. However, as the US insisted on a reciprocal tariff rate of 15?20% and did not respond to some exemption requests, hardline opinions have gained traction within the EU. Japan also agreed to open its automobile and agricultural markets and to invest in the liquefied natural gas (LNG) project in Alaska, United States, but only succeeded in lowering the tariff rate from 25% to 15%.