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Europe braces for potential U.S. trade tariffs

The EU prepares counter-tariffs as uncertainty over a trade deal with the U.S. continues.

July 25, 2025 at 11:36 AM

What Europe's response to a no-deal with Trump could look like

Uncertainty remains about if and when a trade agreement between the EU and U.S. could be struck.

Europe prepares for no-deal trade scenario with the U.S.

Brussels is bracing for a possible no-deal scenario as uncertainty lingers over the timing of a trade agreement between the European Union and the United States. On Thursday, lawmakers approved a comprehensive package of counter-tariffs aimed at various goods. With August 1 approaching, the EU anticipates that U.S. tariffs could reach 30% on imports. Officials have also hinted at potential exemptions under consideration. Meanwhile, many discussions about a deal remain in flux, relying largely on U.S. President Donald Trump's unpredictable nature. The situation is fluid, with no clear outcomes in sight.

Key Takeaways

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Brussels approves counter-tariffs amid uncertainty

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EU imports to the U.S. face possible 30% tariffs

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Trump's decisions will heavily influence outcomes

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Carsten Brzeski predicts a tit-for-tat tariff strategy

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The EU seeks a balanced response to U.S. measures

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Negotiations for a trade agreement remain unclear

"In a non-deal scenario without another delay of US tariffs, I see the EU going for a tit-for-tat approach."

Carsten Brzeski predicts EU retaliation if a deal fails to materialize

"Given that European countries are not fully aligned on how to react, I cannot see the EU going full in."

Brzeski highlights the complexity of EU states' responses to U.S. tariffs

The escalating tension in trade relations between the EU and U.S. highlights a growing divide that could unfold into a significant economic dispute. The EU's readiness to implement retaliatory tariffs underscores not only a commitment to protect its market but also the fragility of international trade agreements in the current political climate. As both sides navigate these challenges, the threat of escalating tariffs serves as a reminder of how quickly economic relationships can deteriorate. Companies and consumers alike should prepare for the impacts of potential trade increases or disruptions.