EU "prepares for combat" against Trump's tariff threats: if no agreement is reached, a 30% tariff will be imposed on 100 billion euros worth of American goods.

As trade negotiations with the United States have reached a standstill, the European Union is planning to swiftly impose retaliatory tariffs at the same level on approximately 100 billion Euros (around 117 billion US dollars) worth of American products, in response to the threat by US President Trump to impose 30% tariffs on most EU exports after August 1. A spokesperson for the European Commission stated on Wednesday that as part of the first wave of countermeasures, the EU will merge the approved tariff list for 21 billion Euros worth of US goods with the previously proposed list for an additional 72 billion Euros worth of American products into a comprehensive plan. On July 12, Trump suddenly announced that tariffs of 30% would be imposed on imports from the EU and Mexico starting August 1. The President of the European Commission, Jean-Claude Juncker, announced on July 13 that in response to the 30% tariffs from the US, the EU will continue its dual-track strategy: continuing negotiations while preparing retaliatory measures. On the same day, the EU temporarily suspended the retaliatory measures against the United States Steel Corporation and aluminum tariffs that were originally scheduled to take effect on July 14. The EU had previously imposed retaliatory tariffs of 25% on 21 billion Euros worth of American goods in April, but delayed the implementation to July 14 to allow time for trade negotiations. With the deadline approaching on July 14, Juncker announced the further postponement of the measures to August 1. According to sources, US export products, including aircraft from Boeing Company (BA.US), American-made cars, and Bourbon whiskey, will face tariffs matching the 30% threatened by Trump. The tariffs are expected to take effect next month, provided that no agreement is reached between the US and the EU. Following the news, the Euro continued to decline against the dollar, falling by 0.3% to 1 Euro to 1.1723 US dollars. The EU's actions come as member countries, including Germany, are facing increasingly tough negotiating positions from the US and are beginning to strengthen their own stance. A government official, speaking on condition of anonymity, stated that Germany is even willing to support the use of the EU's Anti-Coercion Instrument (ACI) in the event of no agreement being reached. German Chancellor Angela Merkel told reporters after meeting with Czech Prime Minister Petr Fiala in Berlin on Tuesday, "We are approaching a decisive phase in the US tariff dispute. We need a fair, reliable, and low-tariff agreement. Otherwise, we will face economic uncertainty at a time when stability is most needed." The Anti-Coercion Instrument (ACI) is one of the EU's most powerful trade tools, consisting of 27 member countries. More and more member states are supporting the use of this tool in the event of no agreement being reached. The ACI is primarily designed for deterrent purposes and has not yet been formally included in the agenda; its activation requires a qualified majority of support from the member states. Once activated, the EU can initiate broad retaliatory actions, including imposing new taxes on US tech giants, restricting American investments, and limiting US access to the EU market. Sources have revealed that the EU executive body, the European Commission, is discussing the use of the ACI with member states. While some member states are pushing for immediate activation, the majority prefer to observe developments after August 1 before further advancing, in order to secure the necessary majority support. Currently, the EU's most favored strategy is to continue negotiations with Washington and hopes to break the deadlock before the deadline next month. Negotiators from the EU and the US are scheduled to continue discussions on Wednesday.