With time ticking down to August 1 and stalled negotiations, European Union leaders are drawing up plans for retaliatory tariffs targeting up to €72 billion in U.S. goods should a deal fail to materialize. The EU’s strategy involves activating its “anti-coercion” legal tool to impose duties on a wide array of U.S. exports, including aircraft, vehicles, machinery, medical devices, chemicals, and bourbon whiskey.
Although the EU is still pushing for a negotiated agreement and has postponed the rollout of its tariffs to allow talks to continue, momentum is firmly behind preparation for a trade confrontation if an accord isn’t reached. The bloc aims to be ready not just on goods but also on U.S. digital services and public‑procurement contracts—seeking full readiness to respond to any broad U.S. tariff actions.
This escalation reflects a stark shift: after initially trying diplomatic engagement with hopes of a fair settlement, the EU is now preparing for a protracted trade showdown. While leaders remain wary of a full-blown trade war, they stress that they won’t hesitate to defend their economic interests if pressed.