Brussels prepares to strike back with up to 30% levies on US goods and services starting August 7 if no deal is reached, responding to US President Donald Trump's tariff threats.

The European Commission and member states are discussing the possible use of the anti-coercion instrument, which would allow the bloc to target digital and financial services in the event of a failure to reach a deal with the US on tariffs.

Any EU move to put levies on US services will be of concern to Ireland, given the presence of most of the big American tech firms employing thousands of people here. The US accounted for about 48 per cent of all Irish services imports and 13 per cent of exports in 2023, the most recent Central Statistics Office data available.

The EU is compiling a list of possible tariffs it could respond with should its negotiations with Washington fall through. According to sources, the European Commission is considering export control measures on goods worth $845 billion,

The EU executive is preparing a list of proposed restrictions on US services companies -- including tech giants -- should Brussels fail to strike a trade deal with Washington, European diplomats said on Thursday.