The European Union has approved a €93 billion ($109 billion) package of counter-tariffs on American goods, set to take effect from August 7 if trade negotiations with the United States collapse, according to European diplomats. This move comes in response to US President Donald Trump's recent threat to impose a 30% tariff on EU goods unless a trade deal is reached by August 1.

While Brussels and Washington are reportedly moving closer to an agreement that would see a baseline 15% tariff on European goods, the EU is proceeding with detailed plans for retaliation should talks fail. The approved package includes previously agreed tariffs on €21 billion worth of US products, such as soybeans, as well as a new list of €72 billion proposed by the European Commission this month. This second list targets a range of American goods, including airplanes, cars, and whisky.

Supported by 26 EU member states, excluding Hungary, the counter-tariffs could reach up to 30% on the targeted goods, diplomats said. The European Commission, representing the 27-nation bloc in the negotiations, has maintained a patient approach, allowing time for talks before threatening reprisals.

Diplomats suggest that the US proposal under EU review may include exemptions for sectors like aircraft, lumber, pharmaceuticals, and agricultural products. However, key EU capitals such as Paris and Berlin have urged Brussels to adopt a firmer stance if necessary.

In addition to the goods tariffs, the Commission is also preparing a separate list of restrictions targeting US services firms, including those in technology and finance, should negotiations with Washington break down.