EconomyLens.com
No Result
View All Result
Monday, September 1, 2025
  • Home
  • Economy
  • Business
  • Markets
  • Tech
  • Editorials
EconomyLens.com
  • Home
  • Economy
  • Business
  • Markets
  • Tech
  • Editorials
No Result
View All Result
EconomyLens.com
No Result
View All Result
Home Other

EU split on targeting US tech over Trump tariffs

David Peterson by David Peterson
April 7, 2025
in Other
Reading Time: 8 mins read
A A
1
25
SHARES
315
VIEWS
Share on FacebookShare on Twitter

Trade chief Maros Sefcovic said the EU would weigh its response to a 'paradigm shift of the global trading system'. ©AFP

Luxembourg (AFP) – Should the European Union target US Big Tech and services in response to President Donald Trump’s tariff onslaught? Differences on the key issue were on display on Monday as the EU sought a show of unity on the pushback. The EU’s trade commissioner, Maros Sefcovic, said the 27-country bloc was weighing its response to a “paradigm shift of the global trading system” as Trump’s sweeping tariffs sent world markets crashing.

Related

European stocks steady after robust gains for Chinese equities

Alibaba soars but Europe, Asia stocks mixed

Alibaba soars but Asia markets dip

European stocks retreat before US inflation data

Modi says India, Japan to ‘shape the Asian century’

Heading into their first talks since Trump ordered 20 percent tariffs on the bloc’s imports, EU trade ministers all agreed: Brussels must negotiate with Washington to avoid a damaging trade war. But the bloc has already vowed strong countermeasures should negotiations with Trump’s team fall short — and ministers hoped on Monday to narrow their differences over what that response could entail.

France came out swinging before the talks in Luxembourg, urging the EU not to rule out an “extremely aggressive” trade response to Trump. EU chief Ursula von der Leyen signalled last week that Brussels had different options to respond to the United States, noting the bloc “holds a lot of cards”. Backed by Germany and Austria, Paris has been pushing for the EU to consider targeting US services, including digital — drawing fire from Ireland which relies heavily on US investment, particularly in the pharmaceutical and tech sectors.

Targeting services “would be an extraordinary escalation at a time when we must be working for de-escalation”, Irish Trade Minister Simon Harris told reporters. But if Trump took the bloc’s surplus in goods with the United States — meaning it exports more than it imports — as his reasoning for hurting the EU, officials have indicated Brussels could target the US services surplus in response. The 27-country bloc had a goods trade surplus of 157 billion euros ($171 billion) with the United States in 2023. But in services, where American firms are dominant, the EU had a trade deficit of 109 billion euros with the United States.

France and Germany have specifically raised the possibility of deploying a new tool called the anti-coercion instrument (ACI), a trade weapon that has never been used and has been dubbed a “bazooka”. First adopted in 2023, it gives the EU greater powers to respond to trade coercion, with options available including restricting US companies from public tenders, limiting trade on services as well as intellectual property rights protection. “We must not exclude any option on goods, on services…and open the European toolbox, which is very comprehensive and can also be extremely aggressive,” French Trade Minister Laurent Saint-Martin said, explicitly referencing the ACI tool.

German Economy Minister Robert Habeck likewise said Europe must be prepared to use it. Harris made it clear Ireland was opposed. “It is in many ways the nuclear option if you start talking about the use of the anti-coercion instruments and the likes.” “What’s important here is that Europe reacts in a calm and measured way,” Harris said, a position backed by Italy and Spain, which made no reference to hitting services. Spanish Trade Minister Carlos Cuerpo said the EU should “convey a message that we do not want to escalate any conflict”, while Italy’s Antonio Tajani said Europe had to “avoid uncontrolled reactions that would cause damage” to both sides.

In calibrating its response, a European diplomat said the EU was watching to see how the United States responds to Beijing’s retaliatory higher duties that kick in later this week. “Our first strategy is that China will impose tariffs on the United States, so we will probably wait and see what the United States will do, what this will cause,” the diplomat said. The ministers will also discuss EU-China trade relations, which will require careful handling as Brussels fears US tariffs will cause Chinese goods to flood into the bloc, but also wants to avoid further tensions with Beijing.

Trump’s universal tariffs came weeks after he slapped higher levies on steel and aluminium imports as well as cars and auto parts that have hit the EU hard. The commission, which leads on trade policy, has prepared a list of US goods to target in response to the metals tariffs, which it will present to EU states later on Monday with a vote expected on Wednesday. Von der Leyen held talks with the steel sector on Monday and will on Tuesday speak to the pharmaceutical sector, which fears being targeted by Trump’s tariffs soon.

© 2024 AFP

Tags: EUtariffstrade
Share10Tweet6Share2Pin2Send
Previous Post

Market panic deepens as Trump scolds China

Next Post

Boeing settles to avoid civil trial over Ethiopian Airlines crash

David Peterson

David Peterson

Related Posts

Other

Vandalism hobbles Nigeria’s mobile telephone services

August 30, 2025
Other

Cash-strapped Taliban look to airspace for windfall

August 28, 2025
Other

Brazil police target network that siphoned billions from fuel sector

August 28, 2025
Other

Small parcels in limbo as Trump moves to end US tariff exemption

August 28, 2025
Other

Stocks mixed as investors digest US GDP, Nvidia earnings

August 28, 2025
Other

Stocks mixed after Nvidia record earnings

August 28, 2025
Next Post

Boeing settles to avoid civil trial over Ethiopian Airlines crash

Trump warns against 'stupid' panic as markets plummet

Stocks sink again as Trump holds firm on tariffs

JPMorgan Chase CEO warns tariffs will slow growth

0 0 votes
Article Rating
Subscribe
Notify of
guest
guest
1 Comment
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
  • Trending
  • Comments
  • Latest

New York ruling deals Trump business a major blow

September 30, 2024

Elon Musk’s X fights Australian watchdog over church stabbing posts

April 21, 2024

Women journalists bear the brunt of cyberbullying

April 22, 2024

France probes TotalEnergies over 2021 Mozambique attack

May 6, 2024

New York ruling deals Trump business a major blow

77

Ghanaian finance ministry warns against fallout from anti-LGBTQ law

74

Shady bleaching jabs fuel health fears, scams in W. Africa

71

Stock markets waver, oil prices edge up

65

Nestle sacks CEO over office relationship

September 1, 2025

UK fintech Revolut valued at $75 bn: source to AFP

September 1, 2025

Mauritania’s Tah takes over as Africa’s ‘super banker’

September 1, 2025

Bosnian truckers block deliveries in protest over EU rules

September 1, 2025
EconomyLens Logo

We bring the world economy to you. Get the latest news and insights on the global economy, from trade and finance to technology and innovation.

Pages

  • Home
  • About Us
  • Privacy Policy
  • Contact Us

Categories

  • Business
  • Economy
  • Markets
  • Tech
  • Editorials

Network

  • Coolinarco.com
  • CasualSelf.com
  • Fit.CasualSelf.com
  • Sport.CasualSelf.com
  • SportBeep.com
  • MachinaSphere.com
  • MagnifyPost.com
  • TodayAiNews.com
  • VideosArena.com
© 2025 EconomyLens.com - Top economic news from around the world.
No Result
View All Result
  • Home
  • Economy
  • Business
  • Markets
  • Tech
  • Editorials

© 2024 EconomyLens.com - Top economic news from around the world.