EU's Bold Tariff Threat in Trade Showdown with U.S.

The European Union has prepared a robust response amid stalled trade negotiations with the United States, announcing a potential 21 billion euros in tariffs if a deal isn't reached, stated Italy's Foreign Minister Antonio Tajani in a newspaper interview.

This comes after President Donald Trump's threat to impose a 30% tariff on imports from Mexico and the EU, scheduled for August 1, due to unsuccessful negotiations with key trading partners. Tajani suggested that the European Central Bank should pursue a new "quantitative easing" program and further interest rate cuts to aid the eurozone's economy.

While the EU extended its suspension of countermeasures until early August, Tajani remained optimistic about negotiations. German Chancellor Friedrich Merz, alongside French President Emmanuel Macron and European Commission President Ursula von der Leyen, vowed to counter the escalating trade tensions. European Trade Commissioner Maros Sefcovic highlighted the potential for positive outcomes, warning that a 30% tariff would severely impact trade.

(With inputs from agencies.)