An increasing number of Member States of the European Union (EU) He wishes the block to activate his strongest trading tool against the US if the two sides do not reach an acceptable agreement by August 1st and Donald Trump threatens 30% of the US largest trading partner.
The French leadership for the development of the so -called EU against coercion is backed by more than half a dozen European capitals, according to sources cited by Bloomberg. Several Member States are more cautious, while others have not yet expressed a position, the sources said.
The issue was discussed at a meeting of the Ministers of Commerce on Monday (14.7.2025), sources said. Benzame Hadad, France’s European Affairs Minister, said earlier this week that Brussels’ response should include the possibility of using the tool, which may be used to impose tax on US technological giants, for example.
The first use of the ACI would probably cause yet another wider transgressor trade war, given Trump’s warnings that retaliation against US interests would only cause a tougher tactic than his government. “In this negotiation, you have to show strength, you have to show power, unity and determination,” Handad said on Monday on Bloomberg television.
“We can go further” from the countermeasures announced by the European Commission (Commission) with a target US trade worth almost 100 billion euros ($ 116 billion), he said, referring to ACI.
The Commission, which leads the trade issues on behalf of the bloc, has so far stated that the use of the tool is premature as the negotiations continue. Commission President Ursula von der Laien told reporters on Sunday (13.7.2025) that “ACI has been created for emergencies” and “we are not there yet”.
The overwhelming preference between the capitals and EU officials is to continue negotiations and find a solution to the deadlock, while maintaining the threat of countermeasures with countermeasures depending on the loss of US duties.
Talks between the United States and the EU continued despite the fact that Trump threatened by a letter sent on the weekend to impose a 30% duty on most block exports from next month, along with 25% existing duties on cars and car accessories and 50%.
EU Commissioner Michael McGrath said today (16.7.2025) on Bloomberg’s radio that he is expecting an agreement by August 1st, although Brussels “was surprised and disappointed” when they received Trump’s letter.
“These are difficult and complex negotiations,” McGrath said. “We remain focused as the EU in the essential discussions.”
Yesterday Tuesday (15.7.2025), Trump – who is known for escalating his rhetoric when the negotiations were on – said he was likely to impose duties on certain medicinal products as early as next month. This could particularly hit European pharmaceutical companies.