European Union ready to impose retaliatory tariffs to secure better trade deal with Trump

Ahead of the looming deadline for talks, a senior official warned that the European Union would have to issue a "credible threat" of retaliation in the trade war launched by Mr. Trump if it wanted a good deal, according to the Financial Times. Two European Union officials said Seibert, chief of staff to the European Commission president, told European Union ambassadors last week after the G7 summit that the prospect of a strong response would help persuade the US president to lower steep tariffs on the European Union. German Chancellor Angela Merz also hinted that his government would support tougher measures. "If there is no deal, we are prepared to use all options. We can and will defend our interests," he said on Tuesday. Mr. Seibert told ambassadors that von der Leyen, European Commission president, was ready to escalate talks for a better deal. He asked them to support a package of tariffs on US goods worth 95 billion euros, and said the European Commission was also preparing measures on services - including a tax on US technology companies and restrictions on US companies' access to public procurement contracts. The message, one of the officials said, was that "we need leverage through a credible rebalancing package".