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EU to Push for Deal With U.s, to Avoid Prohibitive Tariff
Published by Global Banking & Finance Review®
Posted on July 14, 2025
3 min readLast updated: January 22, 2026
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EU ministers aim to negotiate with the US to avoid 30% tariffs, which could disrupt trade. Talks indicate a possible positive outcome, but the EU prepares for all scenarios.
EU to push for deal with U.S, to avoid prohibitive tariff
By Philip Blenkinsop
BRUSSELS (Reuters) -European Union ministers agreed on Monday to prioritise negotiations with the United States to avoid threatened 30% tariffs that the EU trade chief said would wreck transatlantic trade.
U.S. President Donald Trump said on Saturday he would impose 30% tariffs on most EU imports from August 1, though diplomats say there is still time to hammer out an agreement to prevent this.
European Trade Commissioner Maros Sefcovic said he had sensed that talks with U.S. counterparts were approaching "a good outcome for both sides" but the new tariff threat had created "a new dynamic".
A 30% tariff rate would make it almost impossible to continue trading as before, with enormous consequences for supply chains and negative impacts on both sides of the Atlantic.
"And therefore I think we have to do, and I will definitely do, everything I can to prevent this super-negative scenario," he told reporters before a meeting of EU ministers to discuss trade.
Despite Trump's letter, Sefcovic said he understood that U.S. negotiators were willing to continue negotiations, though he warned that the EU would need to prepare for all outcomes, including possible countermeasures.
The Commission has proposed suspending the EU's first package of potential tariffs on 21 billion euros ($24.5 billion) worth of U.S. goods. An initial suspension was due to expire by midnight on Monday.
It is also likely to seek the green light on Monday for a second package that would hit 72 billion euros of U.S. goods.
Danish Foreign Minister Lars Lokke Rasmussen agreed that it was too early to impose countermeasures and that he hoped the EU would remain united on that front.
"But we should prepare to be ready to use all the tools," he added. "If you want peace, you have to prepare for war. And I think that's where we are."
French Trade Minister Laurent Saint-Martin said the EU should go beyond what the Commission had outlined to date, saying the bloc should also look at targeting U.S. services or use its wide-ranging "anti-coercion" instrument.
This instrument allows the bloc to retaliate against third countries that put economic pressure on EU members to change their policies.
"This balance of power desired by Donald Trump is a balance of power in which you must demonstrate your ability to fight back. And this is perhaps where we need to accelerate today," Saint-Martin said.
($1 = 0.8559 euros)
(Reporting by Phil Blenkinsop and Milan Strahm, writing by Bart Meijer; Editing by Kirsten Donovan, Bernadette Baum and Gareth Jones)
Key Takeaways
- •EU ministers focus on US negotiations to avoid 30% tariffs.
- •A 30% tariff would severely impact transatlantic trade.
- •Talks with the US show potential for a positive resolution.
- •EU prepares countermeasures if negotiations fail.
- •France suggests targeting US services as a countermeasure.
Frequently Asked Questions about EU to push for deal with U.S, to avoid prohibitive tariff
1What is the proposed tariff rate by the U.S. on EU imports?
U.S. President Donald Trump proposed a 30% tariff on most EU imports starting August 1.
2What is the EU's response to the tariff threat?
The EU is prioritizing negotiations with the U.S. to avoid the tariffs, with Trade Commissioner Maros Sefcovic expressing optimism about reaching a good outcome.
3What are the potential consequences of the 30% tariff?
A 30% tariff would severely disrupt trading, impacting supply chains and having negative effects on both the EU and U.S. economies.
4What measures is the EU considering in response to U.S. tariffs?
The EU is considering suspending its proposed tariffs on U.S. goods and may look into targeting U.S. services as part of its countermeasures.
5How does the EU plan to prepare for the tariff situation?
EU ministers discussed the need to prepare for all outcomes, including potential countermeasures, while emphasizing the importance of unity among member states.
