As transatlantic trade tensions escalate, the European Union has readied a €21 billion ($24.5 billion) package of retaliatory tariffs on U.S. goods, Italian Foreign Minister Antonio Tajani revealed on Monday. The measure comes as a counterweight to President Donald Trump’s threat to impose sweeping 30% tariffs on imports from the EU and Mexico starting August 1.
Trump’s announcement on Saturday followed weeks of faltering trade talks with key U.S. partners. In response, the EU announced it would prolong the suspension of its own countermeasures until early August to allow room for diplomacy.
Tajani, speaking to Il Messaggero, said the tariff list is complete and could be expanded further if negotiations break down. Still, he expressed cautious optimism that a deal could be reached. “Tariffs hurt everyone, starting with the United States,” he noted, warning of the broader economic fallout, including risks to American pension funds and savings tied to volatile markets.
He urged a return to dialogue, advocating for a zero-tariff agreement between the U.S., EU, Canada, and Mexico to foster open markets.
Meanwhile, German Chancellor Friedrich Merz and French President Emmanuel Macron are reportedly coordinating closely with European Commission President Ursula von der Leyen to de-escalate the trade standoff.
European Trade Commissioner Maros Sefcovic added that the two sides were inching toward a mutually beneficial outcome but cautioned that a 30% tariff would “practically eliminate” U.S.-EU trade.
As the August 1 deadline looms, both Brussels and Washington face a narrow path between economic brinkmanship and long-term partnership.
