As President Trump once again raises the tariff sword, the European Union is planning to join other countries affected by US tariffs to jointly address this trade challenge.

According to CCTV News, on July 12 local time, US President Trump posted letters to Mexico and the EU on the social media platform "Truth Social", announcing that from August 1, 2025, the US will impose a 30% tariff on goods imported from Mexico and the EU.

According to media reports citing informed sources, the EU is preparing to strengthen contacts with countries such as Canada and Japan, and may even explore coordinated actions to counter Trump's new round of tariff threats.

On Sunday, EU Commission President von der Leyen in Brussels stated that while the EU has suspended its trade retaliation measures against the US until August 1, it will continue to prepare further lists of retaliatory measures to ensure "full preparedness," while reiterating its preference for "negotiated solutions."

Goldman Sachs economists warned that if the 30% tariff rate is fully implemented, combined with existing industry tariffs, the effective tariff rate of the US on the EU could rise by 26 percentage points. If implemented and sustained, the GDP of the eurozone could fall by 1.2% cumulatively by the end of 2026.

The EU Prepares Multi-Layered Retaliatory Measures

According to informed sources who spoke to the media, the EU's current retaliatory measures list will affect about EUR 21 billion (USD 24.5 billion) worth of US goods. In addition, the EU is also preparing another retaliatory list worth approximately EUR 72 billion, as well as some export control measures, which are expected to be submitted to member states as early as Monday.

Von der Leyen said that the EU's most powerful trade tool - the Anti-Coercion Instrument (ACI) - would not be used at this time.

"The anti-coercion instrument is designed for special circumstances, and we have not reached that point yet."

French President Macron responded to Trump's statement on social media, calling on the EU to accelerate preparation of "credible retaliatory measures" including the anti-economic coercion tools if no agreement is reached before August 1.

Negotiations Focus Shifts to Car and Agricultural Tariffs

EU-US negotiations are still ongoing, but several core issues remain unresolved, with car and agricultural tariffs being the focus.

According to previous media reports, the preliminary agreement discussed between the US and EU includes a 10% tariff on most EU exports and limited exemptions for industries such as aviation and medical devices. Additionally, the US proposed a 17% tariff on agricultural products.

According to informed sources who spoke to the media, the EU hopes that agricultural export tariffs do not exceed 10% and opposes the "offset mechanism" of trading investment for tariff reductions, to prevent production transfer to the other side of the Atlantic.

Furthermore, the EU also hopes to ease Trump's 50% tariff on steel and aluminum through quotas, and seek lower tax rates on spirits and wine tariffs.

Informed sources said that negotiations between the two sides will continue this week. In addition to the general taxation that will take effect in August, Trump also imposes a 25% tariff on cars and parts, and a 50% tariff on metals, and is pushing for industry-specific taxes in other areas such as pharmaceuticals and semiconductors. These industry tariffs may still not be protected under the preliminary agreement.

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