US President Donald Trump has threatened to impose a 30 percent tariff on imports from Mexico and the European Union starting on August 1, after weeks of negotiations with the key US allies and top trading partners failed to reach a comprehensive trade deal.
Ursula von der Leyen, head of the EU executive which handles trade policy for the 27 member states, said the bloc was ready to retaliate to defend its interests, while keep working towards an agreement before August 1.
“We will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required,” she said of possible retaliatory tariffs on U.S. goods entering Europe.
EU ambassadors will discuss next steps on Sunday, before trade ministers meet in Brussels on Monday for an extraordinary meeting.
They will need to decide whether to impose tariffs on 21 billion euros of US imports in retaliation against separate US tariffs against steel and aluminium, or extend a suspension which lasts until the end of Monday.
The EU has so far held back from retaliating against the U.S., although it has readied two packages that could hit a combined 93 billion euros of US goods.
European capitals swiftly backed von der Leyen’s position.
German Economy Minister Katherina Reiche called for a “pragmatic outcome to the negotiations”.
French President Emmanuel Macron said on X that the European Commission needed more than ever to “assert the Union’s determination to defend European interests resolutely”.
Retaliation might need to include so-called anti-coercion instruments if Trump did not back down, Macron said.
Spain’s Economy Ministry backed further negotiations but added that Spain and others in the EU were ready to take “proportionate countermeasures if necessary”.
Mexican President Claudia Sheinbaum meanwhile, said she was sure an agreement can be reached.
“We believe, based on what our colleagues discussed yesterday, that we will reach an agreement with the U.S. Government and, of course, under better conditions,” Sheinbaum said in the Mexican state of Sonora.
“Always keep a cool head to face any problem. We represent our people, we represent the dignity of the Mexican people,” Sheinbaum affirmed, reiterating that “there is something that is never negotiated, and that is the sovereignty of our country.” (Reuters)
