“The EU is preparing a retaliatory strike against major US technology companies and banks over Trump’s mega-duties – mediaThe European Union is considering retaliatory measures against the United States over Trump’s new tariffs. Brussels may target
American services such as banks and technology companies.”, — write: unn.ua
“Liberation Day,” as Trump called it, will mark the biggest escalation in the trade war he first started against Canada, Mexico and China after his inauguration on January 20. Universal duties on steel and aluminum soon followed, and then on cars, which placed the burden of protecting the economic interests of the 27-member bloc on the European Commission, the EU executive body.
So far, Brussels has played by the traditional code of trade war, matching Trump’s broader duties on industrial metals with equivalent fees on iconic American brands such as Harley-Davidson. The “eye for an eye” response is designed to match or “reflect” the administration’s actions, but not escalate the situation.
Now, as Washington threatens to punish the EU even more, not only for existing tariffs, but also for what it considers non-tariff barriers, such as its technology rules, Brussels is preparing to raise the stakes.
“We will approach these negotiations from a position of strength,” European Commission President Ursula von der Leyen said in her speech to the European Parliament on Tuesday, ahead of Trump’s announcement of large tariffs.
“Europe has many cards. From trade to technology and the size of our market. But this strength is also based on our willingness to take tough countermeasures. All tools are on the table.”
Targeting American services, Brussels could consider major banks such as J.P. Morgan or Bank of America, or technology players such as Elon Musk’s social network X, search giant Google or Amazon, the world’s largest internet retailer.
“We certainly do not rule out a larger response, a better response and even a more creative response through services, through [intellectual property rights],” a senior European Union official told reporters in mid-March.
The publication notes that the EU is a net exporter of cars, pharmaceuticals and food to the US. But it is a net importer of services – and this gives it more leverage in the trade dispute. (If you take goods and services together, transatlantic trade is actually balanced overall. The EU has an overall surplus of just $50 billion, or about 3 percent of the $1.7 trillion in annual transatlantic trade.)
“American tech giants, the financial industry and pharmaceutical companies have deep roots in Europe. If you go too far, Brussels can tighten the screws: digital fees in Silicon Valley, regulatory restrictions on Wall Street or taxes on pharmaceutical exports from the US,” said Tobias Gerke, a senior fellow at the European Council on Foreign Relations.
“America may wield a bigger club, but Europe has many sharp stones to throw.”
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