Zol War with the United States: How Europe could defend itself

Zol War with the United States: How Europe could defend itself

Global trade war
How Europe can defend itself against Trump’s tariffs








Donald Trump puts pressure on the global economy with his customs policy. Some countries react calmly. Others announced opposites. And what could Europe do?

Donald Trump’s huge customs package will not remain unanswered. But what reactions the US president from Europe can expect is not yet clear. According to a first analysis by the EU, tariffs from a total of more than 81 billion euros could be due on EU goods. For comparison: So far it was only seven billion.

EU politicians have long repeated that there will be a decisive and appropriate answer. Therefore, the Trump measures are now analyzed in the European Union and reactions are weighed up. Because countermeasures can also have negative effects on European companies.

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On Monday, Commission President Ursula von der Leyen wants to discuss the situation with the steel and car industry on Tuesday with the pharmaceutical industry. In principle, several options are available to the EU:

Counter -tariff

The first counter -tariffs are to come in mid -April. It is currently exposed to US products such as jeans, bourbon whiskey, motorcycles from the manufacturer Harley-Davidson and peanut butter. However, these levies are not a reaction to Trump’s latest announcements, but on US special tariffs to steel and aluminum imports that already apply.

In the case of the counter-tariffs, it was important not to cut yourself into your own meat, emphasizes an EU official. The EU can also introduce soybeans from Brazil. If there is no alternative to US products, there should be no against tariffs. The Commission had published an almost 100 -page list of goods that could be affected by countermeasures. In addition to food, soap products, carpets and clothing are listed.

The “bazooka”

Also because of a possible re -election of Trump, the EU had already agreed on a far -reaching sanction instrument in 2023. The chairman of the EU Parliament’s Commercial Committee, Bernd Standen (SPD), describes it as “bazooka” the possible countermeasures. This option is on the table. But he also emphasized: “That is not the first choice.” Before that, there are more traditional measures that can be considered.

For example, the so-called instrument against coercive measures is intended to enable punitive tariffs against third countries who, with economic measures, are inadmissible to intervene in the political decisions of the EU or the EU member states.

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Access to the allocation of public orders from the EU or market access can also be generally limited as possible sanctions. The chairwoman of the internal market committee of the European Parliament, Anna Cavazzini (Greens), cited examples that access to banking, insurance and capital markets of the EU could be limited to American companies.

Digital tax

Taxes on digital services from US companies in the EU could make the platform X from Trump supporter Elon Musk and companies such as Google, Amazon or Netflix. For them, the EU with around 450 million inhabitants is an extremely lucrative market.

In addition, the EU Commission emphasizes that the USA will export significantly more services to the EU than imported from the EU. According to EU numbers, it is around 396.4 billion euros exports compared to imports of 292.4 billion euros.

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negotiations

Brussels continues to signal willingness to negotiate. “The European Union does not want to escalate, it wants to negotiate. From a fair position, but also a position of strength”said an EU official.

EU trade commissioner Maros Sefcovic has announced that it is looking for a conversation with the US side today. “We will be staggered, carefully and uniformly”he wrote. So far, talks between the EU and the US representatives have not produced any tangible results. Sefcovic was only a few days ago for talks in Washington.

According to Lange, offers were always made to talk about concrete compromises, which had been rejected. First of all, one must know where there is a willingness to negotiate on the American side, emphasizes the trading policy. “That is the big problem at the moment.”

More intensive trading partnerships

While talks with the United States are currently running tough, the drastic policy of the US President could breathe new life into other, long-standing projects. The EU Commission recently completed negotiations on a huge free trade zone with the South American state alliance Mercosur. However, the agreement can still fail, in any case the EU Parliament has to agree.

EU Council President António Costa called after US President Donald Trump’s customs announcements that it is now time to ratify the agreement. In addition, it is checked to what extent other partnerships could be intensified, for example with Mexico or with countries particularly affected by US tariffs.

Germany’s executive Foreign Minister Annalena Baerbock (Greens) said that now it shows how important it was to expand free trade relationships with partners around the world. As examples, she cited the Indopazacific region, New Zealand and Australia. The CDU European Member Daniel Caspary also urges that new markets urgently need to be opened up. New trade agreements are necessary.

Dpa

CL

Source: Stern

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