Group 1 - Germany and France are leading a coalition of EU member states demanding retaliatory measures against US tariffs unless concessions are made by the US [1] - The EU's stance has become increasingly aggressive as the August 1 trade agreement deadline approaches, with Germany shifting from negotiation to a more confrontational approach [1] - The US currently imposes a 25% tariff on imported cars from the EU and a 50% tariff on steel and aluminum [1] Group 2 - Support for initiating the Anti-Coercion Instrument (ACI) has been garnered from over six European capitals, including Germany and France, although some member states remain cautious [2] - The likelihood of achieving a 10% "reciprocal tariff" is very low, and exemptions for the EU's automotive and steel tariffs are also difficult to realize [2] - The EU has proposed multiple counter-tariff plans, including a package that would impose tariffs on $21 billion worth of US imports starting August 6 [2]

Core Viewpoint - The U.S.-EU trade negotiations are at a stalemate, with the U.S. imposing a hard deadline of August 1 for new tariffs unless a trade agreement is reached [1][2]. Group 1: U.S. Position - U.S. Commerce Secretary Wilbur Ross emphasized that new tariffs on the EU will begin on August 1, marking a firm deadline for negotiations [1][2]. - The U.S. is pushing for a higher baseline tariff of 15% or more, which exceeds the previously accepted 10% by the EU [3][4]. - The U.S. administration has repeatedly delayed the tariff deadline, but the latest statement indicates no further extensions will be granted [2]. Group 2: EU Response - The EU is preparing for a robust countermeasure, including potential tariffs on over $100 billion worth of U.S. exports and the use of unprecedented "Anti-Coercion Instrument" (ACI) to respond to U.S. economic pressure [5]. - Germany, traditionally inclined towards a quick agreement with the U.S., has shifted its stance to support a stronger response alongside France and other member states [4][5]. - The EU had previously been close to an agreement that included a 10% baseline tariff and increased purchases of U.S. energy products and semiconductors, but negotiations have stalled due to U.S. demands for higher tariffs [3][4].

Core Viewpoint - The article discusses the escalating trade tensions between the United States and the European Union, particularly focusing on President Trump's threat to impose a 30% tariff on imports from Mexico and the EU starting August 1, 2025, which has led to significant concerns and discussions within the EU regarding their response [1][2]. Group 1: Tariff Threats and Negotiations - President Trump announced a potential 30% tariff on imports from Mexico and the EU, escalating from previous threats of 20% and 10% [2]. - EU Trade Commissioner Maroš Šefčovič warned that a 30% tariff would make transatlantic trade "almost impossible" and would have a significant negative impact on trade [1][2]. - The EU is currently in discussions to respond to the tariff threat, with a focus on reaching an agreement before the August deadline to avoid further escalation [1][3]. Group 2: EU Internal Dynamics - There are internal divisions within the EU regarding the approach to take, but a majority prefer to continue dialogue with the US rather than retaliate immediately [3]. - Irish Minister Thomas Byrne emphasized the importance of stability for investor confidence and suggested that prolonged negotiations are preferable to a trade war [3]. Group 3: EU's Countermeasures - The EU is preparing a retaliation plan that includes a new tariff list covering approximately €72 billion worth of US imports, down from an initial €95 billion [4]. - The EU's previous retaliation plan concerning US tariffs on steel, aluminum, and automobiles has been postponed to August 6 to allow for further negotiations [5]. - The EU is considering using its strongest trade tool, the Anti-Coercion Instrument (ACI), to respond to the US's tariff threats, although it is not yet deemed the right time to implement it [6].