France and Germany are insisting on a tougher response to the tariff measures of US President Donald Trump, advocating a strong response that could strengthen the EU's position in negotiations.
This is reported by Bloomberg, reports UNN.
Details
According to Bloomberg, citing sources, French President Emmanuel Macron believes that the European Union should be prepared to respond with options such as targeting American technology and services.
It is noted that while France wants to reach a solution through negotiations, the government is also pushing for a tougher response. One of the interlocutors, on condition of anonymity, said that Paris wants to make sure that the EU responds with all its instruments to protect the interests of the European Union.
Last night's decision can be compared to an aggressive war against Ukraine. The scale and determination of the response must be appropriate
French government spokeswoman Sophie Primas said on RTL radio that the European Commission, which deals with trade issues in the EU, could impose a tax on digital services on American companies by the end of April. The US has a positive balance of trade in services with the bloc, and such a move is likely to increase tensions with the US president.
According to Bloomberg, the introduction of a pan-European tax will require an agreement between 27 member states. Trump's so-called reciprocal tariffs target all trade barriers faced by American exports abroad, such as duties, domestic regulations and taxes.
European Commission President Ursula von der Leyen has previously stated that the EU "holds many cards", including retaliatory tariffs and targeting American service and technology companies.
The EU is the largest single market in the world. Therefore, we have every opportunity to react unitedly and decisively and show that we have our own instruments for action - and they will be used
Earlier, Bloomberg reported that France and other countries called on the commission to consider using the bloc's "anti-coercion instrument" - the EU's most powerful trade instrument designed to strike back at countries that use coercive trade and economic measures.
The so-called "anti-coercion instrument" has never been used before and could lead to restrictions on trade and services, as well as certain intellectual property rights, foreign direct investment and access to public procurement. According to another official, there is growing concern in the EU as American counterparts have shown no interest in resolving the issue through negotiations.
The anti-coercion tool is one option, but it is considered a tool of last resort, given the likely excessive impact it will cause.
EU trade ministers are due to meet on April 7 to discuss US measures and the EU's response.
European Commission President Ursula von der Leyen has promised a firm and proportionate response to the tariffs, but also noted that the EU would prefer to avoid confrontation and find a solution through negotiations in the coming weeks.
The chairman of the European Parliament's trade committee, Bernd Lange, said that a new set of retaliatory proposals is possible within a month, he told Bloomberg TV, after the first set of countermeasures planned for mid-April in response to Trump's already announced 25% tariff on metals.
New measures may appear after an investigation into the damage caused by retaliatory duties in the United States. The commission is reportedly working on a "list of conditions" for possible concessions it could make to the US to help reach an agreement to abolish or reduce duties. The list of conditions will include areas for negotiations on tariffs, mutual investments with the US, as well as mitigation of certain rules and standards.
Addition
US President Donald Trump announced the introduction of new duties for certain countries, including China - 34%, the EU - 20%, Great Britain - 20%.