The European Union is actively preparing for a possible escalation of trade relations with the United States. About this informs Financial Times with reference to European diplomats and American officials. The reason for concern was US President Donald Trump’s plans to introduce high import duties on goods from the EU — from 15% to 20% for all groups of goods, as well as maintaining 25% duties on European cars.
The publication’s sources claim that even if a compromise agreement is reached between the parties, the Trump administration may insist on implementing mirror tariffs of more than 10%, which will effectively block normal terms of trade between the two economic giants.
Against the background of tough rhetoric from Washington, the European Commission has already prepared several packages of measures in response. Some of them were previously temporarily postponed in the hope of the results of the negotiations. But if diplomatic efforts fail, the EU may introduce new tariffs as early as August 6. Potential targets include importing chicken, jeans, Boeing airplanes and bourbon.
In addition to tariff restrictions, Brussels is also considering alternative steps: in particular, the introduction of taxes on digital services and online advertising revenues for American companies operating in Europe. One of the European diplomats, who agreed to speak on condition of anonymity, emphasized:
“We do not seek a trade war. But if the Trump administration leaves us no other choice, we are ready to take decisive steps.”
The tension is intensifying against the background of Trump’s announcement of the introduction of 30% tariffs on imports from EU countries from August 1. In response, European Commissioner for Trade Maros Šefčovych said that such a move “de facto will make transatlantic trade impossible.”
In addition, the US president announced his intention to send a message to more than 150 countries of the world about the introduction of new tariffs, without revealing their exact parameters. According to experts, this can create a wave of global tension in the field of international trade.
It will be recalled that the USA is a key trading partner of the European Union – the American market accounts for about 20% of European exports. That is why a potential escalation could seriously hit the economies of both sides.
