The European Union has already prepared a list of tariffs worth €21 billion on US goods if the two sides fail to reach a trade deal, Italy’s Foreign Minister Antonio Tajani said in a newspaper interview.
US President Donald Trump on Saturday threatened to impose a 30% tariff on imports from the EU and Mexico starting on 1 August, after weeks of negotiations with major US trading partners failed to reach a comprehensive deal.
Mr Tajani also told daily Il Messaggero that to help the eurozone economy the European Central Bank should consider a new “quantitative easing” bond-buying-programme, and more interest rate cuts.
The EU said it would extend its suspension of countermeasures to US tariffs until early August and continue to press for a negotiated settlement.
Mr Tajani said the €21bn package of tariffs the EU has already prepared could be followed by a second set if a deal with the US proves impossible.
He added, however, that he was confident that progress could be made in negotiations.
“Tariffs hurt every one, starting with the United States,” he said. “If stock markets fall that puts at risk the pensions and the savings of the Americans.”
He said the goal should be “zero tariffs” and an open market among Canada, the United States, Mexico and Europe.
Meanwhile, European Trade Commissioner Maroš Šefčovič said that Washington and Brussels were approaching a positive outcome for both sides, and warned that a 30% tariff would practically eliminate trade.
European Commission chief Ursula von der Leyen has insisted the EU still wants to reach an accord – and yesterday delayed retaliation over separate US tariffs on steel and aluminium as a sign of goodwill.
“We have always been very clear that we prefer a negotiated solution,” she said.
“This remains the case, and we will use the time that we have now till August 1.”
The move by Ms von der Leyen spurs hope that Mr Trump’s latest threat has not killed off the progress made in negotiations that have taken place so far between Brussels and Washington.
‘Defend European interests’
EU nations – some of which export far more to the United States than others – have sought to stay on the same page over how strong a line to take with Washington in order to get a deal.
French President Emmanuel Macron on Saturday urged Ms von der Leyen’s commission to “resolutely defend European interests” and said the EU should step up preparation for countermeasures.
German Chancellor Friedrich Merz agreed and said he had spoken to Mr Macron, Mr Trump and Ms von der Leyen in the past few days and would “engage intensively” to try to find a solution.
Italian Prime Minister Giorgia Meloni warned yesterday that a “trade war within the West” would weaken everyone.
The EU’s suspension of its retaliation over US steel and aluminium tariffs had been set to expire overnight Monday to Tuesday.
Since returning to the presidency in January, Mr Trump has unleashed sweeping stop-start tariffs on allies and competitors alike, roiling financial markets and raising fears of a global economic downturn.
But his administration is coming under pressure to secure deals with trading partners after promising a flurry of agreements.
So far, US officials have only unveiled two pacts, with Britain and Vietnam, alongside temporarily lower tit-for-tat duties with China.
The EU, alongside dozens of other economies, had been set to see its US tariff level increase from a baseline of 10% on Wednesday, but Mr Trump pushed back the deadline to 1 August.
In a letter published on Saturday, Mr Trump cited the US’s trade imbalance with the bloc as justification for the new 30% levies.
The EU tariff is markedly steeper than the 20% levy Mr Trump unveiled in April – but paused initially until mid-July.
