The European Union is preparing retaliatory “countermeasures” against the United States if the negotiations break down on Wednesday. The talks will resume in Paris, where EU trade chief Maroš Šefčovič is set to meet with U.S. Trade Representative Jamieson Greer. The Commission is reportedly finalizing an expanded list of retaliatory measures, which would automatically take effect by July 14th or sooner.
“In the event that our negotiations do not lead to a balanced outcome, the EU is prepared to impose countermeasures, including in response to this latest tariff increase,” said European Commission spokesperson Olof Gill during a press conference in Brussels on Monday, June 2nd.
As part of its negotiation strategy, Brussels has floated the idea of increasing purchases of U.S. liquefied natural gas and defense equipment, and potentially lowering auto tariffs. However, EU negotiators are firmly resisting American demands to eliminate the bloc’s value added tax (VAT) or open the European market to U.S. beef.
The EU continues to advocate for a “zero for zero” agreement, under which both sides would remove tariffs on industrial goods, including automobiles. Trump has so far rejected the offer, but Brussels insists it remains available.
