EU prepares $24.5 billion in tariffs as U.S. trade talks stall, says Italy’s Foreign Minister

The European Union has prepared tariffs worth 21 billion euros ($24.52 billion) on U.S. goods if trade talks fail, Italy’s Foreign Minister Antonio Tajani said in an interview published Monday.

He also said a second round of tariffs could follow if no deal is reached.

Tajani said he remained hopeful that negotiations would make progress, but warned that tariffs would hurt both sides. He said falling stock markets could affect American pensions and savings.

The EU said it would extend its suspension of countermeasures to U.S. tariffs until early August as talks continue. President Donald Trump on Saturday threatened to impose a 30% tariff on imports from Mexico and the EU starting August 1, following weeks of failed negotiations with major U.S. trading partners.

Tajani also called on the European Central Bank to consider a new bond-buying program and more interest rate cuts to support the euro zone economy.

German Chancellor Friedrich Merz said on Sunday he would work closely with French President Emmanuel Macron and European Commission President Ursula von der Leyen to help ease tensions with the U.S.

European Trade Commissioner Maros Sefcovic said on Monday that the EU and U.S. were moving toward a positive outcome but warned that a 30% tariff could almost completely stop trade between the two sides.

Tajani added that the long-term goal should be zero tariffs and open markets between Canada, the U.S., Mexico, and Europe.