European Union officials are reportedly open to accepting an unbalanced trade agreement that favors the United States to prevent a potential 30% increase in tariffs on EU imports. The move comes as part of ongoing negotiations with Washington, which aims to resolve a standoff over Trump’s proposed tariffs, which could escalate to 30% if no agreement is reached by August 1.
The negotiations, which have been ongoing since early April, are set against the backdrop of President Donald Trump’s ‘Liberation Day’ policies aimed at protecting American manufacturers. These policies include a 10% tariff on all imports from the EU and other trading partners, with the threat of raising them to 30% by August 1. The EU, however, is not only preparing for the possibility of a deal but also drafting retaliatory measures that could include significant tariffs on US exports, such as soybeans, poultry, and motorcycles, as well as potential export controls and procurement restrictions.
The situation highlights the growing trade tensions between the EU and the US, with the possibility of a no-deal outcome escalating the conflict further. Trump’s stance on tariffs has appeared to have hardened ahead of the August 1 deadline, leaving Brussels bracing for a potential trade confrontation. French Finance Minister Eric Lombard has acknowledged the difficulty of the negotiations, emphasizing that the EU reserves the right to take countermeasures if no balanced agreement is reached with the United States.
Any significant countermeasures could escalate the transatlantic trade conflict, as Trump has warned that targeting US interests would prompt even stronger retaliation from his administration. Meanwhile, the EU has already approved $24.5 billion in retaliatory tariffs on US goods, including soybeans, poultry, and motorcycles, targeting politically sensitive states such as Louisiana, home to House Speaker Mike Johnson. It has also drafted $72 billion in additional tariffs on products such as Boeing aircraft, cars, and bourbon, should Trump impose reciprocal or auto levies. Beyond tariffs, the bloc is considering export controls and procurement restrictions. Washington has so far largely avoided retaliation for its tariffs, while collecting a record high of $64 billion in customs duties in the second quarter of 2025, according to the US Treasury.