Europe is preparing a response to US tariffs: it is about closing the EU market to certain American goods
Kyiv • UNN
The European Union is preparing countermeasures against US tariffs imposed by Trump. The closure of the EU market for certain goods and services from the USA, as well as restrictions for American companies, is being considered.
Brussels is assessing the situation in countering Trump's tariffs, which he introduced on European products, and plans to activate its so-called anti-coercion instrument.
This is reported by UNN with reference to El Pais.
The European Union is honing its trade weapons and preparing symmetrical measures in response to the large-scale trade tariffs initiated by Trump, which Washington has already declared "Liberation Day of America".
Context
On Wednesday, April 2, the new large-scale trade tariffs initiated by US President Donald Trump come into force. All goods from countries that the American administration considers its "worst" trading partners, which account for almost 90 percent of imports, will be subject to a 15% duty.
Escalation of economic confrontation between the US and the EU?
If the decision on new trade tariffs is adhered to, it could lead to an escalation of economic confrontation "to unimaginable consequences", writes El Pais.
The European Commission, which has the trade powers of a bloc of 27 countries and 450 million citizens, is preparing its response to Washington's decision to introduce customs tariffs.
There are no red lines in the European catalog of response measures
Therefore, in addition to a trade response in the form of tariffs on American products - as opposed to the 25 percent tariffs that Washington introduced earlier this month on aluminum and steel - Brussels is considering using its entire arsenal.
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What is it about? It is about the so-called anti-coercion instrument - an economic security weapon that will close the European market to certain US goods and services. Moreover, it may not allow US companies to participate in tenders for government contracts or projects financed from the EU budget.
Reference
Trade relations between the two sides of the Atlantic are among the most intense in the world. For example, imports and exports of goods amount to 975 billion dollars (900 billion euros), and the balance in favor of the EU is 235.571 billion dollars. This is according to data confirmed by the US administration.
What could happen next
If the United States now imposes the huge tariffs they announced on April 2, violating this trade balance - the balance of American goods - will have limitations and, in addition, will affect the EU.
Currently, there is no shortage of people who are considering focusing on trade in services (digital, financial, intellectual property, etc.). This is an area that is not affected by new tariffs, and in which Europe has a deficit, because it exports much less services than it imports.
In 2024, the balance in trade in services was positive for the US at 75,617 million dollars.
These challenges will require the EU to resort to a legal instrument that it has not yet used - a tool to combat coercion.
Its approval took place recently, during the previous session of the legislative body, and "was due to the lessons learned during the first Trump administration." It is also relevant in accordance with the threats posed by China's influence.
This option was not discussed at meetings of the EU Council on Trade, according to sources familiar with these discussions, but it is on the table and has strong supporters in the EU executive, who argue that it can be "modulated" based on Washington's actions.
Reminder
Donald Trump announced the introduction of a 25% duty on all imported cars to the US from April 2. The decision caused concern in the EU, which is assessing the consequences.