EU prepares €116 bln tariff strike
While some dream of peace and global harmony, the European Union is busy crunching numbers to quietly but firmly plot its response to the United States. If the White House does not agree to de-escalate trade tensions by August 1, Brussels is ready to slap tariffs on American goods worth up to €116 billion annually (about $125 billion).
EU officials have drafted two possible retaliation scenarios. The first is a light version, involving €21 billion in tariffs targeting soybeans, agricultural products, and motorcycles. This would be triggered if the US refuses to lift its 10% duties on European steel, aluminum, and cars. These duties have stubbornly lingered since the Trump era.
The second package is more aggressive and loaded with heavy artillery: tariffs on Boeing aircraft, American-made cars, and bourbon whiskey. The total value is €95 billion. This plan will go into effect if the US goes all-in and imposes sweeping tariffs on virtually all EU imports.
The situation could get worse. If talks collapse entirely, American duties on European exports could soar to as high as 50%.
For now, as Washington threatens 17% tariffs on European bacon and parmesan, the EU is responding with polite but pointed diplomacy. The European Union appears to be signaling that it would prefer to steer clear of a full-blown tariff war—but if escalation becomes inevitable, bourbon might be among the first US exports to face the consequences.