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The EU is ready to retaliate against Donald Trump’s 20% tariffs, but will first seek to negotiate a deal, the European Commission president said the world has warned that the US will “very painful” with its move.
Trump announced 20% tariffs on the bloc on Wednesday as part of his “mutual” tariffs on America’s biggest trading partner. Trump has long criticised the EU for “unfair trade practices.”
Ursula von der Reyen on Thursday said the Bullock was “ready to respond” to US taxes, but emphasized that it would negotiate “to remove the remaining barriers to transatlantic trade.”
“We have already finalized the package of initial measures in response to steel tariffs,” she said on a trip to Uzbekistan. “We are currently preparing further measures to protect our profits and business in the event of a failed negotiation.”
Brussels is scheduled to task US goods up to 26 billion euros on April 12, in response to tariffs on steel and aluminum. It has yet to retaliate against the 25% tariff on car exports announced last week.
Von Der Leyen provided Trump with a branch of olives, acknowledging that some countries “have unfair advantages” of the World Trade Rules.
But “reaching out tariffs as your first and last tool will not fix it,” she said, warning that tariffs will “harmful consumers around the world” and will raise the costs of groceries, medication and transportation.
“The global economy will be very difficult,” she said.
Von Der Leyen vowed to “stopping” the EU “start” target industries, including automobiles and steel, protecting the market from discarded goods that have been ousted from the US market.
“We will also watch carefully what indirect effects these tariffs have as they cannot absorb global excess capacity and are unable to accept dumping into the market.
“Europe has everything you need to get through the storm,” she added. “We’re together. If you take on one of us, you take on all of us.”
But behind the scenes, leaders have lobbyed to ensure that the industry is protected from retaliation for EU measures. France sought to scrap the proposal for EU measures against bourbon whiskey, but Ireland called for the dairy duties to be withdrawn.
Italian Prime Minister Giorgia Meloni, Trump’s ally, said tariffs were “not suitable for either party” and he would seek a contract with the US to “prevent a trade war.”
President Trump accused the EU of targeting the US at a valid 39% tariff rate, which the commission puts at about 1%.
The US president is based on other factors such as VAT, which reaches 27% in some member states, as well as restrictions on the import of chickens washed with chlorine and other agricultural products.
The White House is also targeting block tech companies and digital tax regulations.
In 2023, the EU exported 53 million euros of goods to the US, operating a surplus of 15.7 billion euros. However, it was a deficit of 100 billion euros on services.
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The EU can target U.S. services, such as suspending certain intellectual property rights or excluding businesses from public procurement contracts under their enforcement regulations.
A step further is the first use of its “anti-course” equipment. However, any measures must be agreed by the majority of member states’ aggravation.
Simon Yvenet, a professor at IMD Business School, said the EU’s reliance on US military authority to block Russia and the lack of alternative markets limits the bloc’s ability to respond.
“European trade retaliation is a placebo and provides an illusion of resolution, but primary priorities and export diversification priorities are still not addressed,” he said.
