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The EU is considering the export of US services, including BIG Tech operations to take revenge on Donald Trump, which imposes 25 percent of tariffs on the automotive industry and promises a further circle of measures next week.
Brussels has already discovered additional duties up to 26 billion euros in US goods after Washington imposed steel and aluminum tariffs. But European officials and diplomats said The scale of the Trump administration of Trump He demanded that he consider the use of more powerful trade tools.
The block has wide powers to suspend intellectual ownership rights and excludes companies under the Public Procurement Agreement under its implementation implementation, which was reinforced in 2021. After a trade conflict with the first Trump administration.
“Americans think they are with the dominance of escalation [in the trade war]But we also have the opportunity to do this, “said one diplomat of the EU, adding that the goal was ultimately to be made with a comprehensive trade agreement.
The return could include the limitations of intellectual ownership of major technological companies. Another example would be a ban on the Starlink Satellite Network of Elon Musk to conquer government contracts. Italy is already reviewing whether to acquire the system.
“The services are where they are vulnerable now,” said another diplomat. Washington led a Trade excess of 109 billion euros with EU in services 2023, compared to a deficit of 157 billion euros in goods.
EU officials believe that Trump’s administration will be willing to negotiate only after erectioning the tariff wall that would show that it is seriously ensuring better conditions than commercial partners who allegedly used their open market.
European officials hoped that they will progress quickly at the eventual agreement, but admit that even this will not even remove all the additional tariffs that Trump has imposed.
“The view is that we have to answer. That is the only way to agree,” said the third EU diplomat. “We tried to talk.”
Because EU exports far outweigh its imports, the block would fight to match US tariffs on the goods. Brussels also does not want to stop the gas supply from now on the continent.
“There is only so much import of the US goods that the EU can target the economy too much before that,” said David Henig of the European Center for International Political Economy Think-Tank. “If you do not want to target energy, there is a limit of what can be done on the goods. While there is a larger space on the services to retaliate without so much damage to the economy.”
Some experts say the European Commission should use even more economic pain USA Ko-Coercion (ACI) instrument, called “trade basook”.
This tool could limit American banks’ activities, recall patent or prevent companies receiving revenue from software updates or currents.
“I would advise the European Commission to use ACI,” said Ignacio García Berrero, a former senior committee official who conducted negotiations on the US Trade Agreement, Transatlantic Trade and Investment Partnership, which was concluded without an agreement.
The Commission would make all the retaliation that the EU undertaken, but must be approved by the weighted most of the Member States.
EU countries are still negotiating about the census of retaliation of goods composed in response to Trump’s steel and aluminum tariffs; France is pressed to remove whiskey whiskey to avoid falling out for its own beverage industry.
The Commission has delayed measures that also cover jeans, motorcycles and possibly soybeans, until April 12. They will be discussed before the final agreement.
Diplomats and officials said there is a scope for multiple tariffs of goods in response to any “reciprocal” tariffs that will be adopted by the White House next week and it is expected that Brussels will be About 20 percent. Aircraft, chemicals and pharmaceutical products could hit.
Additional Henry Foya reporting in Brussels
