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The EU plans to take the Silicon Valley with retaliation when Donald Trump takes the threats to impose the block of tariffs, and when using a “Bazooka” from Brussels, which could draw services to a trade war.
The European Commission would like to use its so-called “anti-plane instrument” in a potential argument with Washington, said two civil servants with knowledge of the plans that would enable the EU to aim at the US services such as Big Tech.
An official said “All options are on the table” and pointed out the ACI as the hardest reaction without violating international law.
The tool, which was created during Trump’s first term and then used as a deterrent against China, enables the EU’s executive arm to impose restrictions on Trade In services when it finds that a country uses tariffs for goods to force changes to the guidelines.
Trump’s threat to use tariffs to force Denmark to hand over Greenland and urge the EU to extinguish the enforcement measures against US technology companies, the officers would qualify.
Referred to as “Bazooka” by some EU officials if it came into force in 2023 The ACI enables the block to select from a variety of retaliation measures, e.g.
In addition, the EU can block foreign direct investments or restrict market access for bank, insurance and other financial services companies.
A second officer warned that the EU dominated how to deal with goods tariffs, but could still extend a dispute in new areas such as services and rights to intellectual property.
Trump said last week that he would “absolutely” collect tariffs for the EU, and quoted Brüssel’s actions against US technology companies and his great trade deficit. He has not given any details about when the measures would be taken or whether the block could negotiate amendment Canada and Mexico have secured.
The EU Minister of Trade met in Warsaw on Tuesday to discuss its threats. Civil servants about the discussions said that the majority had expressed support for punitive measures.
Commercial commissioner Maroš Šefčovič said he wanted to negotiate a way to avoid tariffs, but added: “If we are hit, we will react firmly.”
Šefčovič found that the block had a big deficit with the United States in services, even though it had a surplus of goods.
Some Member States are careful to wage a trade war if economic growth is so weak. “We want to de-escalate,” said an EU diplomat with knowledge of the discussions.
Every retaliation should be proportional and the Commission would have to damage the EU industry. The approval of at least 15 of the 27 Member States must also obtain. Consultations can take several weeks; The last retaliation tariffs that were imposed on the United States in 2018 took three months.
In contrast, Canada and Mexico announced retaliation measures last week within the hours after the decision in Washington to raise tariffs of up to 25 percent.
Trump then stopped the tariffs in both countries, supposedly in return for obligations, against migrants and drug trafficking.
Laurent Saint-Martin, France’s Minister of Commerce, said the Financial Times that the EU may need faster retaliatory measures despite the ACI. “Speed
In March 2018, Trump imposed tariffs of 25 percent on steel and 10 percent on aluminum. The EU took three months to approve its Retaliation to € 2.8 billion from US goods.
An EU diplomat said the block could move quickly in a crisis and added: “Look at our reaction to the Russian invasion of Ukraine or the Covid pandemic.”
