According to Simon Harris, Ireland’s Tánaiste, it would be a significant escalation for the European Union to target U.S. tech companies in response to President Donald Trump’s comprehensive tariffs on European goods. “If you were to get into that space, it would be an extraordinary escalation at a time when we must be working for de-escalation,” he stated during an emergency meeting of EU trade ministers held in Luxembourg.
Harris emphasized the need for caution, urging the European Commission to refrain from utilizing the Anti-Coercion Instrument. This legislative tool would allow the EU to expand its responses significantly, including actions against tech services, intellectual property, banking, and public procurement. “What we need to do here is step-by-step in a measured way, considering how best to respond,” he added.
As discussions unfold, reports indicate that the EU’s retaliation to Trump’s tariffs could reach up to €400 billion. This amount reflects an effort to counter the 25% tariffs placed on steel and aluminum, along with Trump’s reciprocal 20% tariffs on a wide range of EU exports and 25% tariffs on European cars and auto parts.
Later today, the European Commission plans to unveil a final list of U.S. products that would be impacted by these steel and aluminum tariffs. Member states will convene on Wednesday to vote on this list. Following the outcomes of these tariffs, the Commission will assess their economic implications before potentially exploring further retaliatory measures, particularly concerning cars and reciprocal tariffs.
Concerns about a global economic downturn and a recession in the United States have intensified following the announcements made by the U.S. President. EU ministers are focusing on two key issues: immediate retaliation against the recently imposed 25% tariffs on European steel and aluminum, as well as strategic responses to Trump’s blanket 20% tariffs on nearly all EU exports.
Regarding the prior issue, the European Commission has circulated a comprehensive 99-page report outlining U.S. products that could be subjected to tariffs as retaliation for the steel and aluminum duties. Notably, Ireland, France, and Italy have been advocating for U.S. bourbon to be exempt from this list, especially since Trump threatened to impose a staggering 200% tariff on European wine and spirits. Initial efforts appear to have borne fruit, though the Commission has kept the final list confidential prior to today’s discussions.
In relation to the blanket U.S. tariffs, Harris affirmed Ireland’s unwavering commitment to EU unity. “We must respond firmly yet proportionately while striving for a negotiated solution,” he declared. On this note, U.S. Treasury Secretary Scott Bessant revealed that over 50 countries have reached out to the Trump administration seeking negotiations aimed at reducing tariffs, indicating that the President currently holds “maximum leverage,” as he noted in a conversation with NBC News.
Furthermore, EU Trade Commissioner Maroš Šefčovič shared insights from a candid discussion with Commerce Secretary Howard Lutnick and Trade Secretary Jamieson Greer, assuring that both parties would remain in dialogue. However, his comments do not imply an impending retreat from the Trump administration concerning these tariffs.
In summary, as tensions escalate, the best course of action seems to be careful consideration and measured responses, focusing on collaborative negotiations to navigate these challenges.
Edited By Ali Musa
Axadle Times International – Monitoring.
