EU Plans Tariffs As US Trade Deadline Nears

With an August deadline looming, the EU readies steep tariffs and export bans in a high-stakes trade standoff with Washington, testing hopes for a last-minute deal.

The European Union (EU) has approved a package of countermeasures against upcoming US tariffs, with several set to take effect in early August.

On Thursday, it endorsed regulations that impose levies of up to 30% on a range of American products. Some duties are due to start on 7 August. The measures also include a suspension of steel, iron, and aluminium scrap exports to the US, scheduled to begin on 7 September.

These actions are designed to replace earlier planned retaliatory tariffs against US duties on steel, aluminium, cars, auto parts, and trucks. Implementation of those measures had been postponed twice while the EU pursued a negotiated settlement with Washington.

European Commission President Ursula von der Leyen said earlier this month that the EU had consistently made clear its preference for a negotiated solution, adding that this position remained unchanged and that the time until 1 August would be used to pursue it.

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The move comes as US President Donald Trump prepares to reinstate country-specific reciprocal tariffs announced in April. The EU faces a potential 30% levy from 1 August, up from the 20% proposed in April. These tariffs have been suspended since 9 April but are set to return unless a deal is reached.

The Trump administration has already secured agreements with several nations, including Japan, Indonesia, and the United Kingdom, to reduce or offset planned tariffs. Talks with other trading partners are continuing ahead of the deadline.

The EU’s new countermeasures are intended to protect European industries while signalling readiness to respond if US duties proceed. Whether the two sides can reach an agreement before 1 August remains uncertain, leaving the prospect of a sharp escalation in transatlantic trade tensions.

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Shubha Mitra
Shubha Mitra
Shubha Mitra is an Assistant Editor at EFY, keenly interested in policies and developments shaping the electronics business.

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