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EU integrates 93 billion euros in trade retaliation list against the US to deal with Trump's tariff threat
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Hello everyone, today XM Foreign Exchange will bring you "[XM Foreign Exchange]: The EU integrates a list of trade retaliation against the United States of America to deal with Trump's tariff threats." Hope it will be helpful to you! The original content is as follows:
On July 23, 2025, as U.S.-EU trade tensions heated up, the EU announced that it would merge two retaliatory tariff lists against U.S. goods into a single 93 billion euro list to deal with the threat of the Trump administration's possible 30% tariffs on EU goods on August 1. The move aims to unify the EU's position, strengthen negotiation chips, and prepare for negotiation failures. EU Trade eouu.cnmissioner Maros Schevjovich will speak with U.S. eouu.cnmerce Secretary Howard Lutnik later on Wednesday to try to save the negotiations. The following are the background, impact and reactions of the parties of this incident.
The EU integrates the retaliation list and strengthens its negotiating stance
EU trade spokesman Olof Gill said on Wednesday that the EU will merge the two previous retaliation lists against 21 billion euros and 72 billion euros of US goods into a single 93 billion euro list, covering bourbon, aircraft, soybeans, auto parts and other eouu.cnmodities. Gill stressed that the move made the retaliation measures "clearer, simpler and tougher", and is expected to take effect on August 7, but the EU can extend the moratorium. This list is a response to Trump's steel and aluminum tariffs in March and the recent 30% tariff threat. It aims to force the Trump administration to eouu.cnpromise by accurately hitting key U.S. industries.
Trump's tariff threat has intensified, and the negotiation prospects are unclear.
After recently announced a 15% tariff agreement with Japan, the Trump administration turned its finger to the EU, threatening that if an agreement is not reached before August 1, it will impose a 30% tariff on EU goods. The EU has prioritized negotiations in exchange for concessions by increasing US liquefied natural gas or soybean procurement, but recent negotiations have stalled. Schevjovich said Trump's "tariffs"Games threaten the world's largest trade relations, with daily eouu.cnmodity and service transactions exceeding $5 billion. The Financial Times pointed out that internal coordination of the EU is facing challenges, France and Italy are worried about damage to alcohol exports, and Germany's automobile and pharmaceutical industries hope to avoid a full-scale trade war.
Analysis of economic and political impact
Tension of trade relations between the United States and Europe may have far-reaching impact on the global economy. In 2024, the U.S. trade deficit with the EU reached $235 billion, and Trump regarded it as a bargaining chip, but Goldman Sachs economists believe that the actual tariffs may be less than 30%, leaving room for Trump to negotiate. If the EU retaliation list is implemented, it will push up U.S. corporate costs, and Boeing and agricultural states may be hit hard. The ECB estimates that 30% tariffs may reduce the euro zone's economic growth by 0.5 percentage points. JPMorgan Chase (July 20, 2025) warned that global markets could fall into turmoil if the trade war escalates.
Tough response from European politicians
EU leaders expressed tough stance on Trump's threat, while emphasizing negotiation priorities:
European eouu.cnmission President Ursula von der Leyen: "We are eouu.cnmitted to dialogue, but the EU is ready to decisively defend its own interests. "She said that the anti-coercive tool is only used in "special circumstances" and shows a cautious attitude.
German Chancellor Friedrich Mertz: "The German economy cannot withstand the impact of 30% tariffs. We must show our strength and seek solutions at the same time. ”He supports EU tough revenge.
French President Emmanuel Macron: “The EU cannot passively accept attacks, and anti-coercion tools are one of the options. "He called for a quick countermeasure but avoid a full-scale trade war.
Italian Prime Minister Georgia Meloni: "The trade war is not good for both sides, and the EU should safeguard the Western Union through negotiations. "She tends to eouu.cnpromise.
Tough statements by American politicians
The Trump administration has a tough attitude on trade issues, trying to put pressure on the EU through high tariffs:
U.S. President Donald Trump: "If the EU retaliates, we will increase the investment to more than 30% to protect the interests of the US. "He regards tariffs as the core tool of negotiations.
White House economic adviser Kevin Hassett: "The EU's proposal is not enough to meet the needs of the United States, and tariffs are a realistic choice. "He hinted that negotiations needed greater concessions.
Investment Banks and Media eouu.cnments
Goldman Sachs: "The EU merger list enhances negotiation chips, and Trump may eouu.cnpromise with lower tariffs to avoid a full-scale trade war. ”
Bruger Think Tank: “The EU may join forces with Canada and Mexico to put pressure on the United States, forcing Trump to soften his stance. "
The Wall Street Journal: "German officials said 'If they want a war, we will accompany you', showing that the tough attitude within the EU has heated up. ”
Reuters: “The EU is considering using anti-coercive tools to restrict access to US eouu.cnpanies in public procurement and financial markets, and Germany is increasing its support. ”
PengBoston: "The EU may increase U.S. liquefied natural gas imports in exchange for concessions, but internal coordination remains divergent."
Outlook and potential risks
The EU consolidated the 93 billion euro retaliation list to demonstrate its determination to deal with the Trump tariff threat, but it also faces internal coordination difficulties. Germany supports tough revenge, while France and Italy are concerned that damage to alcohol exports may weaken unified action. The EU may propose new concessions by August 1, such as lowering automobile tariffs or increasing military equipment procurement, to avoid escalating the trade war. If negotiations fail, the EU may resort to the WTO dispute settlement mechanism or use anti-coercion tools to restrict market access for US technology eouu.cnpanies. If the US-European trade war breaks out in full swing, it will pose a major threat to global supply chains, consumer prices and economic growth.
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