EU ministers warn of countermeasures to US tariffs if trade negotiations fail

Fears of a transatlantic trade war as the European Union warns it is preparing potential countermeasures in response to Washington's announcement of sweeping 30 percent tariffs on EU exports to the United States.  

Ministers from the EU’s 27 member states met in Brussels on Monday to discuss how to respond to what they called an “absolutely unacceptable and unjustifed” threat.  

At a joint press conference with EU trade chief Maros Sefcovic after the meeting, Danish Foreign Minister Lars Lokke Rasmussen said that the bloc views the threat 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, but the agreement has to be "mutually acceptable" on both sides.

He revealed that the EU will react with robust and proportionate countermeasures if required.

Sefcovic said member states would prepare for all possible outcomes, including cooperating with like-minded partners and diversifying trade relations with them.  

To leave room for negotiation, he said, the EU would postpone imposing 50 percent tariffs on a list of US goods worth 21 billion euros to August 1. He also announced a new list of US products worth 72 billion euros on which it could impose tariffs, if trade talks fail. 

Sefcovic said that he believes there is "still a potential to continue the negotiations" but stressed any deal will need the backing of all EU member states and the European Parliament.

According to the EU Council, US-EU bilateral trade was worth almost 1.7 trillion euros last year - 30 percent of all global trade in services and goods.