EU mulls countermeasures to U.S. tariffs: 'All options remain on the table'

The European Union is under no pressure to accept an unfair tariff deal with the United States, its trade chief said on Tuesday, adding that it was being contacted by other countries seeking to forge closer trade ties with the 27-nation bloc.

The EU faces 25 percent U.S. import tariffs on its steel, aluminum, and cars and so-called reciprocal tariffs of 10 percent for almost all other goods, a levy that could rise to 20 percent after U.S. President Donald Trump's 90-day pause expires on July 8.

European Trade Commissioner Maros Sefcovic said the EU would use the pause to prepare further rebalancing measures and ensure a level playing field if talks failed.

"All options remain on the table here," he told the European Parliament, noting that Washington now needs to show its readiness to move toward a fair and balanced agreement.

The commissioner said U.S. tariffs now covered 70 percent of EU goods trade to the United States, which could rise to 97 percent after further U.S. investigations into pharmaceuticals, semiconductors and other products.

Sefcovic said the EU would also guard against possible import surges due to trade diverted by Trump's tariff wall, adding that a task force set up to monitor trade diversion would produce its first results in mid-May.

(With input from Reuters)