The European Union has already compiled a list of tariffs totaling 21 billion euros ($24.52 billion) on US goods, to be implemented if a trade deal between the two blocs fails, Italy’s Foreign Minister Antonio Tajani stated in a newspaper interview on Monday. This comes after President Donald Trump’s Saturday threat to impose a 30% tariff on imports from Mexico and the EU starting August 1, following weeks of unsuccessful negotiations with major US trading partners.
Tajani also told daily Il Messaggero that to bolster the Eurozone economy, the European Central Bank should consider a new “quantitative easing” bond-buying program and further interest rate cuts.
On Sunday, the European Union confirmed it would extend its suspension of countermeasures to US tariffs until early August and continue to push for a negotiated settlement. Tajani indicated that the initial 21-billion-euro tariff package prepared by the EU could be followed by a second set if an agreement with the US remains elusive. However, he expressed confidence that progress in negotiations is still possible.
“Tariffs hurt everyone, starting with the United States,” he said. “If stock markets fall, that puts at risk the pensions and the savings of the Americans.” He emphasized that the ultimate goal should be “zero tariffs” and an open market among Canada, the United States, Mexico, and Europe.
German Chancellor Friedrich Merz stated on Sunday that he would work closely with French President Emmanuel Macron and European Commission President Ursula von der Leyen to resolve the escalating trade dispute with the United States. European Trade Commissioner Maros Sefcovic added on Monday that Washington and Brussels are nearing a positive outcome for both sides, while cautioning that a 30% tariff would effectively eliminate trade.
