Before Trump's 30% tariff stick has even fallen, the EU has already raised its countermeasure sword worth hundreds of billions of euros! "On July 23, the EU Commission dropped a bombshell: if the US insists on imposing a 30% tariff on EU goods on August 1, the EU will merge two countermeasure lists worth €21 billion and €72 billion, imposing a 30% tariff on American flagship products such as Boeing aircraft, American cars, and whiskey, with a total scale reaching $117 billion! Even more shocking is that Germany has for the first time expressed support for activating the EU's "anti-coercion tool," an ultimate weapon referred to by European media as the "trade nuclear option," which may directly kill the business of American tech giants in Europe.
EU's "Triple Strike" Countermeasures: A Full-Scale War from Tariffs to Digital Services
According to the EU's latest plan, countermeasures will be implemented in three steps:
First round of counterattack on August 6: impose tariffs on $21 billion of US goods, with Boeing aircraft and other industrial products being the first to bear the brunt; escalation after negotiations broke down: if the US insists on a 30% tariff, the EU will initiate a second round of countermeasure lists worth $72 billion, covering core industries such as automobiles and chemicals; ACI nuclear button activation: countries like Germany and France are promoting special tariffs on US digital services, and even banning US companies from participating in EU public procurement worth trillions.
"This is not a trade war, this is about overturning the entire table!" The head of the French dairy industry association, Uhal, criticized that the 30% tariff from the US will destroy France's annual €350 million cheese exports, while the German automotive industry faces the catastrophic threat of a 50% tariff.
Trump's "lion's mouth": tariff demands soar from 10% to 30%
Just as the EU swings its countermeasure stick, the US suddenly changes its stance. According to EU negotiators, the Trump administration demanded in the latest round of negotiations to raise the universally applicable tariff from the agreed 10% to directly between 15% and 20%, and refused to make concessions in key industries such as automobiles and steel. "This is like rubbing salt in the wounds!" German Chancellor Merz stated plainly that if a 30% tariff is imposed, the German economy could "zero out overnight."
What is even more shocking is that while the US swings its tariff stick, it simultaneously plays "extreme pressure" at the negotiation table: on July 12, Trump sent a letter to the EU stating that "tariffs will definitely be imposed on August 1," but 48 hours later suddenly backtracked saying "still willing to negotiate." This tactic of "giving a slap and then a date" has put EU Commission President von der Leyen in a dilemma: "We must avoid a trade war, but we cannot let the US think we are easy to bully."
Global stock markets exhibit "abnormal prosperity": Who is betting that the EU dares not fight back?
Despite the shadow of the trade war, European stock markets are staging a "magical reality." As of July 20, the German DAX index has surged 21.3% this year, while the French CAC40 index has also risen 5.8% against the trend. "The market is betting that the EU will ultimately compromise!" pointed out the chief economist of ING, Brouwer, who noted that investors believe the EU does not dare to truly initiate ACI, as that would lead to a "lose-lose" situation.
But the EU's patience is wearing thin. On July 21, representatives of the 27 EU countries held an emergency closed-door meeting, where the French representative made a harsh statement: "If the US continues to take further steps, we will not hesitate to use all weapons!" Germany more directly warned: "Trump's tariff stick may shatter the last cornerstone of the transatlantic alliance."
Chinese Perspective: Global Trade Rules Face Reconstruction
This confrontation between the US and EU is essentially a clash between the old order and new rules. EU Trade Commissioner Šefčovič stated bluntly: "The US is using 'national security' as a pretext for trade protection, which is a blatant violation of WTO rules." Meanwhile, Zhang Hao, an expert at the European Research Institute of the Chinese Academy of Social Sciences, pointed out: "The EU's initiation of ACI marks the accelerated transformation of global trade from 'cooperation and win-win' to 'strategic games.'"
When the countermeasure plan worth hundreds of billions of euros meets the 30% tariff stick, and the "anti-coercion tool" encounters "America First," this may be just the beginning of the most intense trade confrontation of the 21st century.
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