EU Prepares Tariff Strikes Targeting $845 Billion in US Services – What’s Next?

• Why Is the EU Targeting US Goods With Tariffs?
• How Did Trump’s Tariff Threats Escalate the Trade War?
• What’s at Stake for the $1.7 Trillion Transatlantic Partnership?
• How Is Brussels Preparing for a Trade War?
• Could This Spark a 2009-Style Financial Crisis?
• What’s Next in the US-EU Trade Standoff?
• FAQs: Your Burning Questions Answered

The EU is gearing up for a high-stakes trade showdown with the US, proposing retaliatory tariffs on $845 billion (€74 billion) worth of American goods—including cars, bourbon, and tech services. This comes after President TRUMP threatened a 30% tariff on EU imports starting August 1. The move has already rattled bond markets and cast doubt on the $1.7 trillion Transatlantic Trade Partnership. Here’s a deep dive into the escalating trade war, its economic fallout, and why Brussels insists it’s "protecting EU interests."

Why Is the EU Targeting US Goods With Tariffs?

The European Commission is drafting a list of retaliatory tariffs targeting $845 billion in US exports, equivalent to roughly €74 billion. While the final list hasn’t been shared with EU member states, insiders confirm it includes automobiles, bourbon, machinery, and even tech services. This escalation follows Trump’s latest threat—a 30% tariff on EU goods—set to take effect August 1. The Commission argues these measures are necessary to counter "unjustified and harmful" US trade policies.

How Did Trump’s Tariff Threats Escalate the Trade War?

Since April, the US and EU have been locked in tense trade negotiations. Trump initially proposed a 20% tariff on European goods, later reducing it to 10%. But on Sunday, he blindsided markets by announcing a 30% hike, citing the need to "rebalance" trade deficits. The shockwave sent French and German bonds tumbling to levels last seen during the 2009-2011 Eurozone debt crisis. EU Trade Commissioner Maroš Šefčovič warned the MOVE could make transatlantic trade "almost impossible."

What’s at Stake for the $1.7 Trillion Transatlantic Partnership?

The proposed tariffs have investors sweating over the future of the $1.7 trillion Transatlantic Trade and Investment Partnership (TTIP). Analysts at BTCC note that Trump’s 50% tariff threat on copper imports and similar measures against Canada, Japan, and Brazil suggest a broader protectionist shift. "This isn’t just about cars and bourbon—it’s a systemic challenge to global trade norms," one Brussels insider told us.

How Is Brussels Preparing for a Trade War?

The EU has a €11 billion ($13 billion) retaliation plan ready if talks collapse by August 1. Targets include US aircraft, auto parts, machinery, and even tech firms like Apple and Google. Šefčovič insists the bloc must "protect the EU economy," though he hopes to avoid a "super negative scenario." Interestingly, the EU had previously softened tariffs as a goodwill gesture—until Trump dismissed Ursula von der Leyen’s tariff-free auto proposal as "inadequate."

Could This Spark a 2009-Style Financial Crisis?

The bond market reaction has eerie parallels to the 2009-2011 Eurozone crisis. "When German bunds tremble, it’s time to pay attention," quipped a Frankfurt-based trader. Data from TradingView shows EU industrial stocks have underperformed US peers by 12% since April. Meanwhile, CoinGlass reports increased hedging in euro futures—a sign markets are bracing for turbulence.

What’s Next in the US-EU Trade Standoff?

With the August 1 deadline looming, von der Leyen is urging continued negotiations. But Brussels isn’t waiting—it’s already lining up targets from Kentucky bourbon to Silicon Valley algorithms. As one Commission official put it: "We’re done being punching bags." Whether this leads to a deal or a full-blown trade war may depend on who blinks first.

FAQs: Your Burning Questions Answered

What US products face EU tariffs?

Cars, bourbon, aircraft parts, machinery, electronics, chemicals, and even tech services are on the list.

When do Trump’s 30% tariffs start?

August 1, unless negotiations succeed.

How much could the EU retaliate with?

Up to €11 billion ($13 billion) in counter-tariffs.

Why are bond markets reacting so strongly?

The tariffs threaten EU export revenues, sparking fears of economic slowdown—hence the bond sell-off.