TMTPOST -- American services   could be added   to the European Union ’ s   retaliatory target list, highlighting European countries are feeling the urge   to ramp   up   preparation in case their trade   negotiations   with the U.S.   fail.

Credit：China Central Television

The European Commission is weighing   a new   round   of retaliatory measures   against   tariffs   imposed by the United States   that   would restrict   the county ’ s   services   and procurement,   the Politico reported   on Thursday. It cited   European diplomats   that   Maros Sefcovic, European Commissioner for Trade and Economc Security,   Interinstitutional   Relations   and Transparency,   floated the idea in a meeting   on Monday,   and   the EU ’ s trade chief   said   the preparatory work was   under way   for measures beyond   goods.  

The report   suggested that   the   European Commission   has   to   consider   targeting trade of services   because there   is little room for   EU to lauch new   countermeasures   on U.S. President Donald   Trump ’ s tariffs.   "It ’ s clear they need to start looking at services as we have more or less exhausted ourselves on goods. And if Trump comes with more bombshells like pharma and semiconductors, we need to have something to hand," said one of the aforementioned diplomats.

The report   indicated that idea about   curbs on   U.S. services   didn ’ t   receive   recognition   among   the EU members   yet. A majority of the countries   is reportedly concerned about what exactly   would be   targeted, and if   this could draw further reprisals from the Trump administration as Brussel   and Washington are negotiating   to reach a   trade   agreement that would allow the EU   to spare from   upcoming   30% tariffs   that Trump threatened   days ago.

Trump on Saturday released his letter to Ursula von der Leyen, president of the European Commission, dictating new tariffs on the EU exports starting August 1.   Just like letters Trump sent to leaders of more than 20 countries, the president said the new tariffs would separate from sectoral tariffs, warning them not to retaliate, urging them to relocate companies to the United States, and suggesting that the tariff rates could be adjusted if they cooperate.

EU trade minister agreed on Monday that Trump ’ s new threat of 30% tariffs was "absolutely unacceptable" after a meeting in Brussels. Sefcovic that day said   it was "very obvious from the discussions today, the 30% is absolutely unacceptable."   He also said the European Commission was sharing proposals with the 27 member states for the second list of goods accounting of some € 72 billion euros ( $84 billion ) worth of U.S imports.

The EU has finalized a second list of countermeasures to target American goods worth € 72 billion, or $84 billion, including Boeing Co. aircraft, automobiles, bourbon, machinery products, chemicals and plastics, medical devices, electrical equipment, wines and other agricultural goods if it decides to retaliate against new U.S. tariffs, Bloomberg later Monday cited a 206-page list prepared by the European Commission.

A   growing   number of the EU members want   the bloc to activate its Anti-Coercion Instrument ( ACI )   against the U.S. if an acceptable agreement is   not struck by   August 1   and   Trump starts levying 30% tariffs, Bloomberg reported on Wednesday.   More than half a dozen European capitals   are in   favor of   the proposal for deployment of the   ACI tool, led by French,   the report quoted   people familiar with the   matter. Several   member   states are   more cautious, while others have   not   expressed their position,   per the report.  

The ACI is   the EU ’ s most powerful trade tool as it   enables   the   European Commission   to   adopt   a wide range of response   measures   in   retaliation   to coercive   actions   from   U.S., such as   new   taxes   on U.S. tech   giants, targeted   curbs   on U.S. investments,   limited access to the EU market. It also could give officials the   power   to hit target services.