EU prepares to impose €21b tariffs on US, says Italian FM

Lailuma Sadid
Credit: REUTERS/Guglielmo Mangiapane

Milan (Brussels Morning Newspaper) – Italy’s Foreign Minister, Antonio Tajani, stated on Monday that the European Union has already compiled a list of tariffs totaling 21 billion euros on U.S. goods, which could be implemented if the two sides do not reach a trade agreement.

On Saturday, President Donald Trump threatened to implement a 30% tariff on imports from Mexico and the EU beginning August 1, following weeks of unsuccessful negotiations with key U.S. trading partners to reach a comprehensive agreement.

Tajani also stated that to support the eurozone economy, the European Central Bank should explore a new “quantitative easing” bond-buying program and implement additional interest rate cuts. The European Union announced on Sunday that it would extend its suspension of countermeasures against U.S. tariffs until early August and continue urging for a negotiated resolution.

How is Antonio Tajani framing the trade dispute?

Tajani mentioned that the €21 billion tariff package prepared by the EU might be followed by a second set if negotiations with the U.S. fail. However, he expressed confidence that progress in negotiations is achievable.

“Tariffs hurt every one, starting with the United States,”

He said.

“If stock markets fall that puts at risk the pensions and the savings of the Americans.”

He stated that the aim should be “zero tariffs” and an open market between Canada, the United States, Mexico, and Europe.

He also mentioned that a decline in the stock market could threaten Americans’ pensions and savings. He reiterated that their long-term objective is to achieve zero tariffs, fostering an open market among the US, the EU, Canada, and Mexico.

He also urged Europe to approach negotiations calmly and confidently, highlighting that it’s “in everyone’s interest” to prevent a trade war, since

“Europe needs America, and vice versa.”

What is the status of US-EU trade talks?

Moreover, EU ministers are convening this morning for urgent discussions following US President Donald Trump’s threat to impose 30% tariffs on the bloc, despite previous optimistic talks with the US administration about avoiding such measures.

European Trade Commissioner Maros Sefcovic stated on Monday that negotiations between Washington and Brussels are making significant progress, with both sides approaching a positive outcome in their ongoing trade dispute. Sefcovic expressed optimism before a meeting with EU trade ministers in Brussels, indicating that the parties are “very close to an agreement” that could benefit both the European Union and the United States.

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Brussels Morning is a daily online newspaper based in Belgium. BM publishes unique and independent coverage on international and European affairs. With a Europe-wide perspective, BM covers policies and politics of the EU, significant Member State developments, and looks at the international agenda with a European perspective.
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Lailuma Sadid is a former diplomat in the Islamic Republic of Afghanistan Embassy to the kingdom of Belgium, in charge of NATO. She attended the NATO Training courses and speakers for the events at NATO H-Q in Brussels, and also in Nederland, Germany, Estonia, and Azerbaijan. Sadid has is a former Political Reporter for Pajhwok News Agency, covering the London, Conference in 2006 and Lisbon summit in 2010.
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