The European Union is examining ways to resolve the tariff crisis with the United States.
EU leaders are preparing to inform the European Commission of their stance on how to handle the crisis during an upcoming meeting in Brussels. They will be asked to specify whether they prefer reaching a quick trade agreement that grants some concessions to Washington or escalating the dispute in hopes of achieving better terms for the EU.
It is likely that most European leaders will opt for a swift solution to avoid an economic confrontation, with the possibility of addressing imbalances later through internal measures to restore fairness in trade relations. U.S. President Donald Trump threatens to impose tariffs as high as 50% on EU imports after the deadline set for July 9.
In response to these threats, the EU announced its intention to impose tariffs on American goods, including Boeing aircraft, if Washington follows through with its threats. The head of the EU’s industry sector, Stefan Siggourney, stated that the bloc would be compelled to respond to protect certain key sectors if the U.S. insists on an unbalanced agreement.
The European Commission is the entity authorized to negotiate trade on behalf of EU member states and will consult leaders on the appropriate response by the deadline. With concerns mounting over a potential 10% American tariff that could increase, more European countries are leaning towards a swift settlement.
Currently, the EU faces a 50% U.S. tariff on steel and aluminum, 25% on cars and parts, and 10% on other European goods, which could double if an agreement is not reached soon.
About 23 EU leaders are expected to attend the summit after participating in a NATO meeting, amidst a desire to avoid a trade escalation that could threaten the harmonious atmosphere of the previous summit.
Discussions within the EU are revolving around imposing tariffs on U.S. goods worth €21 billion, alongside considering a new package worth $95 billion, despite some countries preferring to ease tensions. Proposed options include taxing digital advertisements, which could affect major American tech companies like Google, Apple, Meta, and Microsoft, aiming to narrow the trade surplus in services favoring the U.S., while the EU retains a surplus in goods.
