EU Prepares Retaliatory Tariffs as Trade Tensions with US Escalate

Brussels is bracing for a potential trade war with Washington as the August 1 deadline looms. France and Germany are leading calls for the European Commission to activate the Anti-Coercion Instrument (ACI), a never-before-used tool designed to counter economic pressure. The MOVE comes in response to threatened US tariffs of 30% on European imports.

Two waves of EU countermeasures are already prepared: €21 billion in targeted goods starting August 6, followed by €72 billion more on August 7. A third phase under development WOULD directly hit US tech giants through digital services taxes and online advertising levies. The ACI could further restrict American companies' access to lucrative EU public procurement markets.

The proposed measures represent Europe's most aggressive trade posture in decades. Market analysts warn such escalation could trigger volatility across asset classes, though cryptocurrencies may benefit from their traditional role as hedges against geopolitical instability. The coming weeks will test whether both sides can step back from the brink or if tit-for-tat measures will reshape global trade patterns.