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EU proposes new countermeasures amid trade dispute with US

Xinhua | Updated: 2025-07-15 14:37
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BRUSSELS - The European Union (EU) has proposed a new round of tariffs on US goods worth 72 billion euros (84 billion US dollars), amid the ongoing trade dispute between the world's largest economy and its biggest trading partner.

EU trade ministers met in Brussels on Monday following US President Donald Trump's surprise announcement over the weekend of new tariffs on the bloc. Maros Sefcovic, the EU's trade chief, said after the meeting that it was "very obvious from the discussions today, the 30 percent is absolutely unacceptable".

He said that the commission was sharing proposals with the 27 members "for the second list of goods accounting for some 72 billion euros (84 billion dollars) worth of US imports. They will now have a chance to discuss it. This does not exhaust our toolbox and every instrument remains on the table".

Lars Lokke Rasmussen, the foreign minister of Denmark, which recently assumed the EU presidency, said the bloc views the new tariff as "absolutely unacceptable and unjustified" and is prepared to respond if talks with Washington fail to produce a viable outcome.

"We are committed to continuing working with the United States on a negotiated outcome," he said, adding that the agreement has to be "mutually acceptable" on both sides.

In a letter to European Commission President Ursula von der Leyen on Saturday morning, Trump announced a 30 percent tariff on the EU as of Aug. 1, blaming the bloc for causing "long-term, large, and persistent Trade Deficits".

"Our relationship has been, unfortunately, far from reciprocal," he wrote in the letter. "The EU will allow complete, open Market Access to the United States, with no Tariff being charged to us, in an attempt to reduce the large Trade Deficit."

In response to Trump's latest deadline, the EU decided to postpone retaliatory counter tariffs on 21 billion euros (24.5 billion dollars) of US goods that had been due to kick in at midnight on Monday until Aug 1.

The EU is open to trade talks with the United States for an agreement before the deadline, but won't rule out taking countermeasures, said Von der Leyen.

"We remain ready to continue working towards an agreement by Aug 1," the EU leader said in a statement. "At the same time, we will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required."

The proposed tariff threatens to take a heavy toll on the EU economy. An analysis by the Milan-based Institute for International Political Studies suggested that Italy would be among the EU countries most affected by the US tariffs.

Under a 30-percent duty scenario, Germany's GDP would contract by an estimated 0.5 percent compared to a no-tariff baseline, while Italy's GDP would shrink by approximately 0.36 percent, said the think tank.

On Monday, the Association for the Development of Industry in the Mezzogiorno (SVIMEZ) released its estimate of the impact of the US tariffs on Italy's exports, projecting a reduction of nearly one-fifth in export volume and a loss of 12.4 billion euros (14.48 billion US dollars) in trade once the tariffs take effect.

SVIMEZ also warned of broader macroeconomic consequences, estimating a 0.5-percent reduction in Italy's GDP in 2026 and the potential loss of up to 150,000 jobs, including some 13,000 in the country's southern regions.

"Our government is in close contact with the European Commission and all parties involved in the tariff negotiations," said Italian Prime Minister Giorgia Meloni in a statement.

"A trade war within the West would make us all weaker in the face of global challenges we are addressing together. Europe has the economic strength to protect its interests and reach a fair agreement," she said.

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