Should the European Union for Great Technology and Services be targeted in response to President Donald Trump’s attack? Differences were presented on the main issue on Monday, when the European Union sought to a unit to decline.
The European Union Trade Commissioner, Marus Civkovic, said that the 27 -countries bloc weighing its response to a “model in the global trading system” as it sent the sweeping tariff of Trump global markets.
With their first talks since Trump requested a 20 percent tariff on the imports of the bloc, all European Union trade ministers agreed: Brussels must negotiate with Washington to avoid a harmful trade war.
But the bloc has already pledged to strong counter measures that must limit negotiations with the Trump team – and the ministers were hoping on Monday to narrow their differences about what this response could require.
France fluctuated before the talks in Luxembourg, and urged the European Union not to exclude a “very aggressive” commercial response to Trump.
European Union President Ursula von der Leyin indicated last week that Brussels had various options to respond to the United States, noting that the bloc “carries a lot of cards.”
With the support of Germany and Austria, Paris was pushing for the European Union to consider targeting American services, including benefiting from Ireland, which relies heavily on American investment, especially in the medicine and technology sectors.
Simon Harris, Irish Minister of Trade, said:
But if Trump takes the surplus of the mass in the goods with the United States – which means that it is exporting more than its import – as its region to harm the European Union, officials indicated that Brussels can target the surplus of US services in response.
The 27 -countries bloc, the surplus of goods trade, was 157 billion euros ($ 171 billion) with the United States in 2023.
But in services, where American companies dominate, the European Union was a trade deficit of 109 billion euros with the United States.
Bazooka Trade
France and Germany specifically raised the possibility of spreading a new tool called the Arch Control Tool (ACI), a trade weapon that has not been used at all and called “Bazoka”.
It was first adopted in 2023, and it gives the European Union greater powers to respond to commercial coercion, with options available, including restricting American companies from public tenders, reducing trade on services as well as protecting intellectual property rights.
“We should not exclude any option on the goods, to the services … and open the European tools fund, which is very comprehensive and can be very aggressive,” said French Trade Minister Laurent Saint Martin, expressing explicitly to the ACI tool.
German Economy Minister Robert Habik said that Europe should be ready to use it.
Harris explained that Ireland opposed. “It is in many ways the nuclear option if you start talking about the use of control tools and what you like.”
“The important thing here is that Europe interacts in a calm and measuring way,” said Harris, a position backed by Italy and Spain, who did not refer to services.
Spanish Minister of Trade Carlos Cuerbo said that the European Union should “convey a message that we do not want to escalate any conflict”, while Antonio Tajani in Italy said that Europe “should” avoid immovable reactions that would cause damage “to both sides.
“Wait and see”
Upon calibrating its response, a European diplomat said that the European Union was watching to find out how the United States responds to Beijing’s highest reprisal duties that arrive later this week.
The diplomat said: “Our first strategy is that China will impose a tariff on the United States, so we are likely to wait and see what the United States will do, what will this do.”
The ministers will also discuss the trade relations of the European Union, which will require accurate treatment, as Brussels fears that the US tariff will lead to dumping Chinese goods in the mass, but it also wants to avoid more tensions with Beijing.
The comprehensive Trump tariff came weeks after the high fees were slapped to import steel and aluminum, as well as cars and car parts that hit the European Union strongly.
The committee, which leads commercial policy, prepared a list of American goods to target it in response to the definitions of minerals, which it will provide to the European Union states later on Monday with an expected vote on Wednesday.
Von Der Leyen held talks with the steel sector on Monday and will speak on Tuesday to the pharmaceutical sector, which is afraid to target Trump’s tariff soon.
This story was originally shown on Fortune.com
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