EU Trade Commissioner Maros Sefcovic flew to Washington on Wednesday to try to resolve tariff disputes with the U.S. He will meet with U.S. Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer to discuss the issue. The talks come as U.S. President Donald Trump has threatened to impose a 30% tariff on imports from the EU starting August 1. Europe calls this tariff unacceptable and says it would seriously damage trade between the two biggest markets.
The threat has already caused concern in industries. ASML, a major supplier of chip-making machines, warned that tariff uncertainty is causing U.S. chipmakers to delay investments. This affected ASML’s stock, which fell sharply in early trading. German Finance Minister Lars Klingbeil also criticized the tariffs, saying they could harm the U.S. economy as much as Europe’s.
To prepare, the European Commission has drafted a list of possible counter-tariffs worth 72 billion euros ($83.6 billion) targeting U.S. goods like Boeing planes, bourbon whiskey, and cars. The EU remains open to talks but is ready to respond if the U.S. moves forward with tariffs. Klingbeil said the EU will not accept everything and must be ready to protect its interests.
Trump’s tariff actions have disrupted decades of global trade progress, rattling financial markets and raising inflation fears. European companies expect a tough earnings season, with falling profits and revenue. The car industry is especially worried, facing heavy U.S. tariffs on imports. Renault recently warned of lower profits, adding to concerns.
Adding to the challenge, the euro has risen over 12% against the dollar this year, making EU exports more expensive in the U.S. Italy’s top business leader called for zero tariffs on EU goods, saying tariffs plus the strong euro are a double blow to European exporters. The August 1 deadline allows time for talks, and some experts think Trump may back down, as he has done before.