EU may hit US tech sector with possible Trump tariffs

The European Union is planning to retaliate if US President Donald Trump implements his threats to impose duties on EU products. This may be the first time that the so-called “bazooka” will be used by Brussels. by Brussels, a tool designed to respond to pressure and coercion in trade disputes that can involve not only goods but also services.

This was reported by the Financial Times , UNN and UNN.

Details  

The European Commission intends to use its “anti-coercion tool” in a potential dispute with Washington, according to media reports, two officials with knowledge of the plans, which would allow the EU to target US services industries such as large tech companies.

The official said that “all options are being considered” and pointed to ACI as the toughest possible response that does not violate international law.

An instrument developed during Trump’s first term, which was later used as a deterrent against China, allows the EU executive to impose restrictions on trade in services if it determines that a country is using tariffs on goods to force policy changes.

The Mutual Recognition Act (MRA), which came into force in 2023, has been dubbed a “bazooka” by some EU officials, and allows the bloc to choose from a wide range of retaliatory measures, such as removing protection for intellectual property rights or their commercial exploitation, such as software downloads and streaming services. It also allows the EU to block foreign direct investment or restrict market access for banking, insurance and other financial groups.

It is also reported that despite the fact that the EU has experience in regulating tariffs on goods, it may still refuse to allow the dispute to cover new areas, including services and intellectual property rights.

EU ready to respond decisively to possible US tariffs – von der Leyen04.02.25, 12:59 • 29192 views

Laurent St. Martin, the French trade minister, told the Financial Times that despite the ACI, the EU may need to take faster retaliatory measures.

Speed is one of the key issues, we have to be ready faster than last time. We need to be more united and faster

Recall

Earlier, UNN wrote that the EU seeks to enter into a dialogue with the United States as soon as possible to prevent the introduction of duties planned by US President Donald Trump. In particular, the confirmation of Trump’s nominees for the position of Secretary of Commerce, financier Howard Lighthizer and U.S. Trade Representative Jamison Greer, is expected to be made.