EU’s €21 Billion Tariff List Targets US Goods Amid Trade Row
The European Union is ready to retaliate against the United States with a 21-billion-euro ($24.52 billion) list of tariffs if no deal can be reached, according to Italy’s Foreign Minister Antonio Tajani. In an interview with Il Messaggero published on Monday, Tajani revealed that the tariff package has been prepared as a countermeasure and could be doubled if negotiations stall indefinitely.
This dramatic escalation in transatlantic trade tensions comes just days after former US President Donald Trump threatened to enforce a 30% tariff on imports from both Mexico and the EU starting August 1, if talks with Washington’s main trading partners do not yield a comprehensive agreement.
Europe Takes a Stand—But Open to Dialogue
European leaders have taken a firm but measured approach. The EU announced it will extend its suspension of countermeasures to US tariffs until early August, leaving the door open for further negotiation. According to Tajani, the 21-billion-euro tariff list is just the first step; a second round could come swiftly if negotiations truly collapse.
Despite the tough rhetoric, Tajani stressed his optimism:
“I am confident that progress can be made in negotiations. Tariffs hurt everyone, starting with the United States. If stock markets fall, that puts at risk the pensions and the savings of the Americans.”
His remarks highlight the mutual risks at stake as both economies grapple with post-pandemic recovery, inflation, and volatile financial markets.
Economic Stakes for Both Sides
The potential impact of a 30% tariff would be devastating, warned European Trade Commissioner Maros Sefcovic. He told media outlets on Monday that such high tariffs “would practically eliminate trade” between Washington and Brussels, underlining the interconnectedness of the world’s two largest economies.
Meanwhile, German Chancellor Friedrich Merz has pledged close cooperation with French President Emmanuel Macron and European Commission President Ursula von der Leyen to seek a rapid solution. “Our priority is to defuse tensions and restore stable trade relations with the US,” Merz stated on Sunday.
Calls for Economic Stimulus: Tajani Urges ECB Action
Tajani also said the European Central Bank (ECB) should act decisively to stimulate the euro zone economy. He advocated for both a new round of “quantitative easing” through bond-buying and additional interest rate cuts to counter the economic fallout.
“We need policy tools to strengthen Europe’s recovery and garner trust in our markets,” Tajani noted.
These calls for monetary support underscore the increasing anxiety among European policymakers about the broader risks of a prolonged trade war.
Toward Zero Tariffs and Open Markets
For Tajani—as for many European officials—the endgame should be the creation of a fully open market across North America and Europe.
“The goal should be zero tariffs and an open market among Canada, the United States, Mexico and Europe,” he insisted.
This vision echoes the underlying principle behind decades of transatlantic cooperation, now facing an uncertain future.
Market Response and What’s Next
News of the escalating dispute and threat of tariffs sparked anxiety across financial markets last week, with stocks fluctuating amid fears of a full-blown trade war.
The EU’s willingness to swiftly impose massive tariffs is seen as both a warning and a readiness to defend Europe’s interests. At the same time, officials on both sides indicate there is still room for a constructive agreement, and diplomatic efforts remain intense.
For now, all eyes are on the August 1 deadline. If no deal emerges, transatlantic economic relations could fundamentally change overnight.
