EU Pushes Urgent Talks with U.S. to Avoid Devastating Tariffs

Ministers seek to defuse transatlantic trade threat before August deadline

European Union ministers agreed on Monday to prioritise negotiations with the United States in a bid to avert sweeping 30% tariffs threatened by U.S. President Donald Trump, a move EU officials warn could severely damage transatlantic trade.

The announcement follows Trump’s declaration on Saturday that the United States would impose 30% tariffs on most EU imports beginning August 1. While European diplomats suggest there is still time to avoid escalation, the proposed duties have injected fresh urgency into already delicate trade talks.

EU Trade Commissioner Maroš Šefčovič said discussions with U.S. negotiators had recently shown promise, but the latest threat had introduced “a new dynamic.” He warned that a tariff of this scale would make normal trade “almost impossible,” disrupting supply chains and triggering economic damage on both sides of the Atlantic. Šefčovič said he was committed to doing everything within his power to prevent what he described as a deeply damaging scenario, speaking ahead of the EU trade ministers’ meeting in Brussels.

Contingency Measures Under Discussion

While emphasising the preference for diplomacy, the EU is preparing for all outcomes. The European Commission has proposed extending the suspension of a first package of retaliatory tariffs on $24.5 billion worth of U.S. goods, initially set to expire on Monday. Ministers are also expected to greenlight a second package targeting up to $78 billion in additional U.S. imports if talks break down.

Danish Foreign Minister Lars Løkke Rasmussen echoed calls for unity and caution. He remarked that it was still too early to implement countermeasures, but stressed the importance of being fully prepared to act if needed, adding that maintaining peace often requires readiness for conflict.

France pushed for a more assertive stance. Trade Minister Laurent Saint-Martin called for broader countermeasures, including potential actions against U.S. services and invoking the EU’s anti-coercion instrument, which permits retaliation against economic pressure from foreign powers. Saint-Martin stated that the moment had come for the EU to demonstrate its ability to push back and suggested that accelerating its response might now be necessary.