EU prepared to ‘stomach’ uneven deal with Trump – Bloomberg

Brussels could accept unfavorable terms to avoid a 30% tariff spike, the outlet has said

EU officials are ready to “stomach” an unbalanced tariff agreement favoring the US in order to resolve the standoff between the two sides before a deadline set by President Donald Trump, Bloomberg reported on Monday, citing people familiar with the matter. 

Negotiations between Brussels and Washington have been ongoing since early April, when Trump announced a series of measures – dubbed “Liberation Day” policies – aimed at shielding American manufacturers.  

The plan included a sweeping 10% tariff on all imports from the EU and most other US trading partners. While the duties have been put on hold pending the talks, Trump warned they could escalate to 30% if no deal is reached by August 1. The new tariffs would be in addition to existing sector-specific levies, including 50% duties on steel and aluminum and 25% on auto imports, which the US imposed earlier this year.  

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With the risk of a no-deal outcome rising, the EU is accelerating preparations for potential retaliatory measures, the outlet said. EU envoys could meet as early as this week to draft a response in case talks with the US collapse, the sources familiar with the discussions told the outlet.   

The move comes as Trump’s stance on tariffs appears to have hardened ahead of the August 1 deadline, leaving Brussels bracing for a potential trade confrontation.  

“These negotiations are difficult,” French Finance Minister Eric Lombard said ahead of a meeting with business federations in Paris, as quoted by Bloomberg. “If we do not reach a balanced agreement with the United States of America, then we reserve the right to take countermeasures that are balanced, of course, but aimed at upholding the interests of the European Union.”

Any significant countermeasures could escalate the transatlantic trade conflict, as Trump has warned that targeting US interests would prompt even stronger retaliation from his administration, the outlet noted.

The EU has already approved €21 billion ($24.5 billion) in retaliatory tariffs on US goods – including soybeans, poultry, and motorcycles – targeting politically sensitive states such as Louisiana, home to House Speaker Mike Johnson. It has also drafted €72 billion in additional tariffs on products such as Boeing aircraft, cars, and bourbon, should Trump impose reciprocal or auto levies. Beyond tariffs, the bloc is considering export controls and procurement restrictions.  

Washington has so far largely avoided retaliation for its tariffs, while collecting a record high of $64 billion in customs duties in the second quarter of 2025, according to the US Treasury.