“If US President Donald Trump is threatening new tariffs against the European Union, the EU can hit the Silicon Valley with measures in response through a mechanism that some in Brussels call a “base”.”, – WRITE: www.pravda.com.ua
If US President Donald Trump is threatening new tariffs against the European Union, the EU can hit the Silicon Valley with measures in response through a mechanism that some in Brussels call a “base”.
Source: “European Truth” with reference to own sources of Financial Times
Details: The European Commission seeks to use its so -called “coercive tool” (ACI) in a potential dispute with Washington, two sources aware of plans reported.
This tool was designed during Trump’s first term and was subsequently used as a factor of restraint against China. It allows the executive power to impose restrictions on trade in services if it determines that the country is using tariffs for goods to force to change policies.
The use of ACI will allow the EU to go to American large technological enterprises (Big Tech).
One of the officials said that “all options on the table” and pointed to ACI as the most rigid answer, which could be accepted without violation of international law.
According to officials, the threat of Trump to use tariffs to force Denmark to transfer Greenland and click on the EU to give up forced measures against US technological companies, under the conditions of use of this tool.
The ACI mechanism, which some EU officials were dubbed the “base” when it came into force in 2023, allows the European Union to choose options for response from a wide range of measures, such as the abolition of intellectual property rights or their commercial use.
It also allows the EU to block foreign direct investment or restrict access to the market for banking, insurance and other financial companies.
Another official, however, emphasized that the EU copes well with the tariffs for goods and it can still evade the expansion of dispute to new areas, including intellectual property services and rights.
Last week, Trump stated that it would “absolutely accurate” EU tariffs, citing Brussels against US technological companies and its major trade shortage in goods trade.
He did not give details about when these measures were taken and whether the block will be able to agree on the deferral, as Canada and Mexico did. EU trade ministers met on Tuesday in Warsaw to discuss his threats.
Prehistory:
- The high representative of the EU on Foreign Affairs and Security Policy Kai Callas has previously stressed that the potential “trade war” between the US and Europe would be detrimental to both parties.
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