Commercial war? EU apparently plans massive retaliation against the United States

Impending trade war

EU reacts to US tariffs: free trade or retaliation

In response to the US criminal tariffs, the EU develops a billion-dollar retaliation plan. But the discussions about escalation risks are ongoing.

According to the EU Commission President Ursula von der Leyen, the EU proposed US President Donald Trump the abolition of all tariffs to industrial goods on both sides. “We offered zero-for-null tariffs for industrial goods,” said von der Leyen in Brussels on Monday. So far, the government in Washington has not responded to this offer.

The EU offered the abolition of mutual tariffs “repeated”, for example in the automotive sector, said von der Leyen. “But there was no reasonable reaction to this offer”. She emphasized that the EU was “always ready for good business”.

The EU hopes for a negotiating solution in the trade dispute with US President Donald Trump. The EU Commission and the member countries also prepare a number of countermeasures to react to the US tariffs.

According to the Irish broadcast “Raidió Partifís Éireann” (RTé), a list of US products that EU tariffs could be raised in the future can be raised. The total scope of these measures could amount to goods worth up to 400 billion euros.

The trigger is several pay decisions from the US government. Among other things, President Donald Trump imposed 25 percent of the steel and aluminum from Europe. In addition, there were a flat rate of 20 percent on most EU exports and other 25 percent tariffs on European cars and auto parts last week.

The EU Commission is now planning an immediate reaction to the metal tariffs. A corresponding catalog of measures comprises around 99 pages. A final product list should be published in the evening. The member states coordinate on this on Wednesday. An extension to other product groups, especially cars, should only take place after the economic effects of the first measures have been assessed.

The Irish Vice Prime Minister Simon Harris spoke out against an expansion of the reactions to US technology groups at a meeting of the EU Minister of Trade in Luxembourg. This option is opened by the so-called Anti-Coercion Instrument (ACI), with which the EU could also target the area of ​​digital services or public order.

Harris said: “If you go on this terrain, that would be an extraordinary escalation in a phase in which we have to work towards de -escalation.” He emphasized that the use of the instrument of the “nuclear option” would equate and is currently not the majority position within the EU. Many US technology groups such as Apple and Facebook have their European headquarters in Dublin. You benefit from extremely low corporate taxes there.

Certain EU countries have also spoken out against individual points of the catalog of measures. According to the report, Ireland, France and Italy urged to delete US bourbon from the list. The background is to prove a threat of Trump, European wines and spirits with a penalty of 200 percent. Apparently this advance could have been successful – the final product list was treated confidentially until the end.

A diplomatic solution to the conflict does not seem to be in sight for the time being. Around 50 countries are said to have requested negotiations from the US government. US Finance Minister Scott Bessant told NBC News, President Trump currently has “maximum room for negotiation”. EU trade commissioner Maroš Šefčovič reported an open exchange with US trade representatives, but there are no concrete signs of gaining in the American side.