EU torn on response to Trump tariffs
The EU has a range of options already in place for enacting tough countermeasures in the wake of President Donald Trump’s sweeping tariffs, which could include trade, investment or funding restrictions
BILATERAL TRADE
2023
GOODS
To U.S. €503bn
€347bn From U.S.
EU surplus
€157bn
SERVICES
€319bn
€427bn
EU deficit
€109bn
FOREIGN DIRECT INVESTMENT
€2.66 trillion
€2.64 trillion
French President Macron has suggested suspending investments in U.S.
POTENTIAL MEASURES
Reciprocal goods tariffs
Meat, cereals, wine, wood and clothing – and bourbon, opposed by French and Italian vineyards after Trump threatens 200% tariff on wine
International Procurement Instrument
Bar U.S. companies’ access to public contracts – worth $2.8 trillion each year
Digital Services Tax
Require Big Tech – Apple, Microsoft, Amazon, Google, Meta – to pay tax on profits in country of consumer
EU “TRADE BAZOOKA”
Anti-Coercion Instrument (ACI)
Allows retaliatory measures when country attempts to coerce EU or member states
Could block foreign investment, restrict market access for financial services – hitting Wall St – or revoke IP protection
Requires agreement by majority of 27 member states
EU SUPPORT FOR USING ACI
Greece
Belgium
Spain
France
Germany
Italy
Ireland
Hungary
Romania
Sources: European Commission, Reuters
Picture: Getty Images
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