【By Observer News, Wang Yi】Faced with the "tariff stick" waved by US President Trump, there are divisions within the EU on whether to retaliate. Amid the disputes among member states, the EU is pushed forward, hoping to reach an agreement with the US through negotiations, while also having to "draw the sword" and finalize a new list of retaliatory tariffs against the US.
According to reports from U.S. Bloomberg, European News (Euronews) and other foreign media on July 15, the EU has finalized the second list of retaliatory tariffs against US tariffs, considering the imposition of tariffs on US goods worth 72 billion euros (approximately 60.29 billion Chinese yuan), including Boeing aircraft, cars and their parts, and Bourbon whiskey.
On the afternoon of the 14th, Věra Jourová, the EU Commissioner for Trade and Economic Security, announced this retaliatory measure at a press conference in Brussels, saying, "We must be prepared for all outcomes, including taking carefully considered moderate measures when necessary to restore balance in transatlantic relations."
Věra Jourová, the EU Commissioner for Trade and Economic Security, European Parliament
Bloomberg noted that this retaliatory list is 206 pages long, originally covering 95 billion euros of US goods, but after weeks of consultation with companies and member states, it was reduced to 72 billion euros.
The first to be hit is aircraft and parts, with the EU planning to impose tariffs on nearly 11 billion euros of such goods, which could severely impact Boeing. Next, the most affected will be machinery (over 9.4 billion euros), cars and their parts (nearly 8 billion euros), agricultural products (over 6 billion euros, including 2 billion euros of fruits and vegetables and 1.2 billion euros of alcohol), precision equipment and instruments (nearly 5 billion euros), as well as medical devices, chemicals and plastic products, toys, sports equipment, and musical instruments.
Bloomberg noted that the document clearly stated that when choosing target goods, the EU prioritized supply chain alternatives and the risk of industry relocation. Military supplies from the US were not included in the retaliatory list.
The EU has now submitted this retaliatory list to member states for discussion and still needs their approval to make it officially effective. However, there are significant differences within the EU regarding whether to retaliate and the extent of the retaliation.
New cars parked in a logistics center in Germany. Screenshot from video
Previously, after Trump delayed the 90-day tariff on the EU, the EU also postponed its first round of tariff retaliation, suspending the imposition of retaliatory tariffs on 21 billion euros of US goods.
After several weeks of negotiation, when the EU thought they were close to reaching a tariff agreement and reluctantly agreed to accept a 10% "minimum benchmark tariff," Trump suddenly posted on his own social media platform "Truth Social" on July 12, announcing that starting August 1, he would impose 30% tariffs on Mexico and the EU.
This news immediately caused a strong reaction from the EU. On the same day, EU Commission President Ursula von der Leyen criticized the tariffs for disrupting the Atlantic supply chain, stating that they would take all necessary measures to protect their interests and consider "appropriate countermeasures," while also stating that "they always prioritize" reaching a solution with the US.
At the same time, internal divisions within the EU surfaced. While Italy and Ireland expressed full support for the EU, stating that "it makes no sense to trigger a transatlantic trade war" and leaning towards "reaching a solution through negotiations to avoid escalation," French President Macron called on the EU Commission to demonstrate a firm determination to defend its interests. If the EU and the US fail to reach an agreement before August 1, the EU should mobilize all means, including the anti-coercion tool, to accelerate the preparation of "credible countermeasures."
According to the EU's anti-coercion tool, which came into effect at the end of 2023, the EU will take retaliatory measures against third countries that attempt to pressure member states to change their policies through economic means. The tool provides a broader range of countermeasures, allowing the EU not only to impose tariffs on goods but also to restrict third-country companies from participating in public procurement projects or to impose restrictions on service trade and investment.
However, some EU officials, including von der Leyen, believe, "We have not reached that point yet." A EU diplomat told Euronews honestly that the reality is that member states' positions will differ depending on the industries they are affected, with some countries demanding strong retaliation and others hoping to minimize losses and avoid conflict.
The Wall Street Journal also pointed out on the 14th that one challenge the EU faces when considering any potential retaliation measures is that Trump links tariffs to policies unrelated to trade. The EU still relies on the US for security, and European officials worry that Trump might again cut support for European defense. In the previous weeks, the EU had hardly discussed retaliation measures while trying to reach an agreement with the US.
Jourová said on the 14th that the 30% tariff "actually hinders" transatlantic trade, and they will continue to seek an agreement with the US. However, she added that the ministers from the 27 EU member states who met in Brussels that day clearly stated that if an agreement cannot be reached, the EU will need to take "balancing measures" to protect the economy.
When talking about the measures the EU is preparing, Danish Foreign Minister Rasmussen said helplessly, "There is an old saying, 'If you want peace, prepare for war.' I think that's exactly our situation now."
This article is an exclusive piece from Observer News, and without permission, it cannot be reprinted.
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