One of Trump's closest allies, Georgia Meloni's minister Antonio Tajani, says EU will hit US with €21 billion in tariffs
How is the EU planning to respond to President Donald Trump's warning?
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Could this escalate into another full-blown trade war?
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There could be a brewing new transatlantic trade war . Following Donald Trump's threat to impose a 30% tariff on EU and Mexican imports beginning August 1, the European Union says it is prepared to respond with €21 billion in retaliatory tariffs.Italy's Foreign Minister Antonio Tajani says the EU is prepared to retaliate with €21 billion in tariffs if trade talks with the United States fail. Negotiations continue despite warnings of economic consequences.Italy's Foreign Minister Antonio Tajani stated in a newspaper interview on Monday that if the two sides are unable to come to an agreement on trade, the European Union has already prepared a list of tariffs worth 21 billion euros ($24.52 billion) on U.S. goods, as per a report by Reuters.Tajani also told the daily Il Messaggero that the European Central Bank ought to think about implementing more interest rate cuts and a new "quantitative easing" bond-buying program in order to support the euro zone economy. According to Italy's foreign minister, the list is locked and loaded.On Sunday, the European Union announced that it would keep pushing for a negotiated settlement and prolong its suspension of countermeasures to U.S. tariffs until early August.Tajani stated that if an agreement with the United States cannot be reached, a second set of tariffs could be imposed besides the 21 billion euros the EU has already prepared. He did, however, add that he was optimistic that negotiations could advance."Tariffs hurt every one, starting with the United States and if stock markets fall that puts at risk the pensions and the savings of the Americans."He stated that an open market and "zero tariffs" between the US, Canada, Mexico, and Europe should be the aim.Ursula von der Leyen, president of the European Commission, and French President Emmanuel Macron will collaborate closely with German Chancellor Friedrich Merz to end the growing trade war with the United States, Merz announced on Sunday.Washington and Brussels are getting closer to a win-win solution, European Trade Commissioner Maros Sefcovic said Monday, but cautioned that a 30% tariff would essentially shut down trade.The EU intends to respond with €21 billion in tariffs on U.S. goods, with more likely to follow.If negotiations fail, Donald Trump has warned that they could begin as soon as August 1.
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