EU gears up list to punish US services

EU Prepares Counter‑Tariffs as Trump Threatens 30‑Percent Levies on Blended Goods

• Trump’s 30‑Percent Tariff Blindsides EU – President Donald Trump recently announced a 30‑percent duty on European Union goods, upending months of diplomacy.
• Brussels Warns of “Forceful” Response – If the EU fails to secure a trade agreement by 1 August, Brussels has already drafted two sets of retaliatory tariffs on U.S. commodities.
• EU Targets U.S. Services as Well – The European Commission is also formulating restrictions on U.S. services, including financial services, with potential exclusion of certain suppliers.

EU’s Dual‑Track Pay‑Back on Goods

• 72 Billion‑Euro Counter‑Tariff – The first retaliation aims at goods worth 72 billion euros ($83 billion) in U.S. markets.
• 21 Billion‑Euro Steel & Aluminium Retaliation – In response to U.S. steel and aluminium tariffs, a separate 21 billion‑euro measure has been drafted.
• Step‑by‑Step Escalation Plans – A diplomat indicated the EU could first impose the smaller tariff, then the larger, before prolonging the counter‑action to services.

EU Commission’s Service‑Sector Measures in Draft

• Public Procurement Limits – The Commission could impose limits on U.S. public procurement.
• Supplier Exclusion Possible – Some U.S. suppliers might be excluded based on U.S. service policies.
• Service restrictions pending member‑state approval – The Commission has not yet formalized any service‑restriction list for EU member states.

Diplomatic Negotiations Heat Up

Maros Sefcovic, the EU’s top trade negotiator, flew to Washington on Wednesday for talks with U.S. counterparts, but the Commission has not disclosed any details on those meetings.

France Pushes for Hard‑Line Trade Tools

• Anti‑Coercion Instrument (“Bazooka”) Proposed – France has urged Brussels to consider activating the EU’s most powerful trade tool if U.S. negotiations stall.
• Implementation Timeline – The Commission would have four months to investigate the third country’s trade practices, then eight to ten weeks for member states to endorse any proposal, followed by a six‑month period for measures to take effect.

EU Member States’ Position and Future Outlook

• Maintaining Flexibility – Most EU member states want to keep options open but support the Commission’s attempt to negotiate a deal before launching retaliatory measures.
• EU’s “Forceful” Response Prepared – Even if the EU activates the anti‑coercion instrument, the process would take months, according to the governing rules.