The European Union is pushing back against the recent trade agreement between the United Kingdom and the United States, warning that it may retaliate against Washington if it doesn’t secure more favorable terms. The backlash comes after a limited deal was struck between US President Donald Trump and British Prime Minister Keir Starmer, which retains a 10% baseline tariff on British exports while easing higher duties on steel and cars.
Sweden’s Trade Minister, Benjamin Dousa, voiced his concerns ahead of an EU trade ministers’ meeting in Brussels, stating that if the UK-US deal is what Europe gets, then the US can expect countermeasures from the EU’s side. Dousa noted that the 10% baseline tariff is still in place, barely making it a trade deal. His concerns were echoed by other EU trade ministers, including Ville Tavio of Finland, who described the deal as “not an optimal agreement for the UK by any means.”
The European Commission has presented a list of countermeasures that could target €95 billion ($106 billion) worth of US goods if talks with Washington stall. The bloc had earlier paused retaliation after Washington temporarily held off raising tariffs for three months. However, with the current deal in place, the EU is urging caution and warning that it will not accept a similar arrangement.
Poland’s Michal Baranowski stated that the EU would not be happy with a UK-style arrangement, arguing that a better deal can be negotiated. French Trade Minister Laurent Saint-Martin also warned that the bloc should be vigilant about thinking that stopping at 10% reciprocal tariffs would be good news.
The situation is further complicated by Trump’s trade adviser, Peter Navarro, who warned the EU that it would be making a grave mistake if it went ahead with its plans, calling the measures counterproductive. The EU had earlier paused retaliation, but with the current state of negotiations, it’s unclear what the future holds.
As the deadline for a deal approaches, the stakes are high. If no agreement is reached by early July, the tariff could rise to 20%, as Trump seeks to narrow the transatlantic trade deficit, which he blames on the EU. The EU is eager to secure a better deal, and with the UK-US agreement as a starting point, it’s clear that the bloc will not back down without a fight.
The tensions between the EU and the US are not isolated, as other countries are also watching the situation closely. China, which has also negotiated a partial rollback of sweeping tariffs with Washington, criticized the UK-US agreement, accusing London of aligning with Washington under pressure. The situation is complex, with multiple players and interests at stake, but one thing is clear: the EU will not accept a deal that it deems unfair, and it’s prepared to take countermeasures to protect its interests.
