empty
15.07.2025 11:25 AM
The European Union Finalizes Second List of Countermeasures

The European Union has finalized its second list of countermeasures against U.S. goods, totaling 72 billion euros. This step comes in response to the ongoing trade tensions between the EU and the United States, triggered in part by U.S. tariffs on European steel and aluminum, as well as concerns over potential tariffs on automobiles.

This image is no longer relevant

According to sources in Brussels, the new list includes a wide range of goods—from agricultural products and textiles to industrial goods and high-tech equipment. The goal of the countermeasures is to exert maximum pressure on the U.S. economy, particularly targeting states that support the U.S. administration's protectionist policies. At the same time, the EU emphasizes that it remains open to dialogue and compromise. However, as stated by European Commission President Ursula von der Leyen, "Europe will not allow itself to be intimidated and is ready to defend its interests under international law." The countermeasures, which may come into force as early as August 1, could further escalate the trade war, negatively affecting the global economy.

The most sensitive product categories include Boeing Co. aircraft, automobiles, and bourbon. Additional tariffs will also be applied to engineering products, chemicals and plastics, medical devices, electrical equipment, wines, and other agricultural goods. The full list consists of 206 pages of documentation prepared by the European Commission.

Initially, the list covered U.S. goods worth 95 billion euros, but it has since been reduced. However, member state approval is still required for the list to take effect. This package of measures is the EU's response to the so-called reciprocal tariff of 25% introduced earlier by President Donald Trump, which applied to most goods, along with additional 25% tariffs on cars and car parts. The general tariff rate was later temporarily reduced to 10% to allow for negotiations. However, at the end of last week, Trump stated that if the EU does not reach a deal by August 1, tariffs will be increased to 30% on all goods.

Over the weekend, the EU announced its intention to extend the suspension of tariffs on the first list of U.S. goods worth 21 billion euros, introduced in response to Trump's steel and aluminum duties. The new EU sanctions list on U.S. goods includes industrial products worth over 65 billion euros, mainly aircraft (nearly 11 billion euros), machinery (over 9.4 billion euros), and automobiles (nearly 8 billion euros). More than 6 billion euros worth of sanctioned U.S. goods account for agri-food products, primarily fruits and vegetables (nearly 2 billion euros) and alcoholic beverages (1.2 billion euros).

The extensive package also includes precision instruments and equipment (nearly 5 billion euros), toys and hobby equipment (over 500 million euros), sporting firearms (nearly 300 million euros), and musical instruments (around 200 million euros).

If trade relations further deteriorate, pressure on risk assets—including the euro—could intensify.

As for the current technical outlook on EUR/USD, buyers now need to focus on reclaiming the 1.1700 level. Only this would allow a move toward a test of 1.1720. From there, a rise to 1.1750 is possible, though achieving this without support from major market participants will be quite challenging. The most distant target remains the 1.1790 level. In case of a decline, I expect any significant buying interest to emerge only around the 1.1660 level. If no support is found there, it would be advisable to wait for a renewal of the 1.1625 low or consider opening long positions from 1.1595.

Regarding the current technical outlook for GBP/USD, pound buyers need to reclaim the nearest resistance at 1.3455. Only this would pave the way for a move toward 1.3490, a level that will be difficult to break above. The most distant target is the 1.3530 level. If the pair declines, bears will attempt to regain control at 1.3410. Should they succeed, a break of that range would deal a serious blow to bullish positions and push GBP/USD down to the 1.3375 low, with a potential move toward 1.3346.

Jakub Novak,
Analytical expert of InstaForex
© 2007-2025
Summary
Urgency
Analytic
Pavel Vlasov
Start trade
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

EUR/USD. Analysis and Forecast

Today, the EUR/USD pair is attempting to attract buyers. Despite the European Central Bank's decision on Thursday to leave interest rates unchanged, the euro is facing headwinds due to ongoing

Irina Yanina 13:20 2025-07-25 UTC+2

No Unity of Opinion Within the ECB Yet

Yesterday, the European Central Bank kept interest rates unchanged, citing risks stemming from the trade war with the U.S., the strong euro, and rising government spending. According to Governing Council

Jakub Novak 11:59 2025-07-25 UTC+2

ECB Leaves Rates Unchanged

Yesterday, many were watching how the European Central Bank would act under current conditions, as the economy still requires stimulus, but inflationary risks prevent further easing. Following the meeting, President

Jakub Novak 11:36 2025-07-25 UTC+2

The Market Has Chosen a Win-Win Strategy

The U.S. stock market has shaken off its fears completely. The VIX volatility index has plunged to its lowest level since early February, while the S&P

Marek Petkovich 11:15 2025-07-25 UTC+2

Will Trump Succeed in Forcing Powell to Do His Bidding? (Potential for a Bitcoin Decline and a Rise in #NDX)

The U.S. president is fully implementing his aggressive policy toward everyone and everything — both in foreign and domestic affairs. While his actions toward trade partners are more or less

Pati Gani 09:57 2025-07-25 UTC+2

What to Pay Attention to on July 25? A Breakdown of Fundamental Events for Beginners

There are relatively few macroeconomic reports scheduled for Friday, but all of them are quite important. In Germany, the IFO Business Climate Index will be released — the least significant

Paolo Greco 06:43 2025-07-25 UTC+2

GBP/USD Overview – July 25: No Sign of De-escalation Yet

On Thursday, the GBP/USD currency pair pulled back slightly, but this strengthening of the dollar has no real impact on the overall picture. The British pound has corrected in recent

Paolo Greco 04:17 2025-07-25 UTC+2

EUR/USD Overview – July 25: The ECB Meeting Did Not Change the Balance of Power Between the Dollar and the Euro

The EUR/USD currency pair continued to move upward on Thursday. There were several macroeconomic events scheduled for the day, and they did provoke a small market reaction

Paolo Greco 04:17 2025-07-25 UTC+2

EUR/USD: ECB's "Hawkish Pause" and Conflicting Macroeconomic Reports

The results of the ECB July meeting provided slight support for the euro. However, contradictory macroeconomic reports and anticipation of the outcome of the US-EU negotiations played a restraining role

Irina Manzenko 00:50 2025-07-25 UTC+2

The Euro Outsmarted the "Bears"

There was no "sell the fact" reaction. One of the reasons behind the recent EUR/USD rally was the expectation that the deposit rate would be held at 2% following

Marek Petkovich 00:50 2025-07-25 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.