The EU is preparing retaliatory tariffs in response to Trump's threats. Only a few days remain.

The European Union is preparing a retaliatory action plan against the United States in the event of a trade agreement not being reached with President Donald Trump, Bloomberg reported. Negotiations are still ongoing, but EU sources say the impasse is deepening .

The US is pushing for tariffs above 10% on all EU goods, with minor exceptions for items such as aviation, generic drugs, and alcohol. In a letter to the European Commission, Donald Trump announced the introduction of a 30% tariff on most EU exports starting August 1st .

Currently, US tariffs already cover goods worth €380 billion, representing 70% of EU exports to the US . The European Union has prepared a response in the form of tariffs on US goods worth €21 billion (including soybeans, poultry, and motorcycles), as well as a list of further tariffs on products worth €72 billion – including Boeing products, American cars, and alcohol.

According to Bloomberg, some member states want to activate the so-called Anti-Coercive Instrument (ACI), which allows, among other things, taxing American technology giants and limiting access of US companies to the EU market.

The European Commission may propose its use, but the decision rests with member states. Any retaliatory decision, however, would require political approval from EU leaders .