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The European Union is getting ready to slap tariffs on more than $100 billion worth of American goods, including planes, cars, bourbon and even medical devices, if trade talks with Donald Trump fall apart. But for now, Brussels says it’s hoping cooler heads will prevail.
After Trump threatened to impose a 30% tax on European products starting August 1, EU officials spent the past day scrambling to prepare a plan B, just in case. Their response? A detailed list of American goods that could be hit hard if talks don’t lead to a new deal.
This matters more than it might seem, even here in Cyprus. If the tariffs go through, it could mean higher costs for imported American machinery, tech, or medical supplies used by local businesses. Products like U.S. wine, chemicals, plastics, and electrical goods could all get more expensive. That could trickle down to local consumers too, whether it's pricier products on store shelves or delays in supply chains.
EU officials are walking a tightrope. They want to show they’re ready to stand their ground, but they also don’t want to make things worse. “Now is the time for negotiations,” said European Commission President Ursula von der Leyen on Sunday, urging calm while reminding the U.S. that Europe also has tools it could use, including the so-called “anti-coercion instrument,” a last-resort measure that could seriously impact U.S. tech companies operating in Europe. Some even call it the “nuclear option.” But Brussels says it’s not there yet.
Cypriot importers, especially those dealing in U.S. goods, are keeping a close eye on developments. “If this turns into a tit-for-tat tariff war, small businesses like ours are the ones who’ll end up paying the price,” said one Limassol-based importer of American construction equipment. “These are not just political games. This hits our bottom line.”
At the same time, Europe remains cautious, not just because of trade, but because of the bigger picture. The EU is still counting on strong U.S. support for Ukraine, and officials are reluctant to pick a fight while that alliance remains so important.
For now, the hope is that the U.S. and EU can strike a fair deal and avoid a messy trade war. But with just weeks to go, Brussels wants to be prepared.
