The European Union is one of the U.S.’ largest trading partners, although the two have yet to strike a trade deal. President Trump had previously given the 27-nation bloc a trade deal deadline of July 9 before nearly all of its import duties rise to 50%.
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While earlier reports said that the EU had “privately conceded” on accepting a 10% baseline tariff from the U.S., that doesn’t appear to be the case anymore.
“We will need to retaliate and rebalance in some key sectors if the US insists on an asymmetrical deal,” said EU industry chief Stephane Sejourne in an interview with Bloomberg News. Retaliation would still come if the “outcome of the negotiations is that a 10% tariff remains,” added Sejourne.
EU Plans Retaliatory Tariffs on U.S. Goods, Boeing
The EU already has a list of what its retaliatory tariffs would cover, and that includes increased duties on American aircraft maker Boeing (BA). Yesterday, the Financial Times reported that the bloc is also considering imposing tariffs on $110 billion of U.S. goods as a bargaining chip in order to secure a fair trade deal. Additionally, it’s mulling tariffs on U.S. technology companies and other non-tariff countermeasures.
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