President Trump’s announcement last week that it will impose a 20 % invoice on goods coming from the European Union has sent shock waves across the 27 -year block, the latest move in a expelled trade war that dissolves the narrow partners.
This week, Europe will proceed with its first counter -service – one of the potentially many to come.
EU officials have spent in recent weeks refining a list of retaliation tariffs that intend to be implemented on April 15. They present the ministers of foreign and trade in the Member States their proposals in Luxembourg on Monday and the vote on the list is expected on Wednesday.
These invoices will respond to steel and aluminum contributions previously announced by Washington and are expected to scan. The preliminary list covered everything, from whiskey and motorcycles to boats and soy. But it would also be only the beginning, an inaugural offer to Europe’s response to the exit of Mr Trump’s invoices.
European officials are working on additional plans to respond to car invoices announced in late March and the 20 % invoices announced by Mr Trump last week.
EU leaders hit the stages for two reasons. First, it took time to assimilate the turmoil of the White House announcements, hoping to plan a response that would cause maximum pain in the United States, while minimizing the fall of European consumers and companies.
They also hope that with the gradual abolition of their answer, they will give Trump’s time to come to the negotiating table. The ultimate goal is to make a deal to avoid a trade war.
“The EU is committed to important negotiations, but also ready to defend our interests,” writes Maros Sefcovic, the Bloc Commissioner, in social media on Friday night after what he described as “Frank”, two hours of meeting with his American counterparts.
As the trade conflict is heated, the bets are high. The European Union is one of America’s most important commercial partners. And the United States is by far the largest export market for European goods.
Since the close relationship, the strike of US invoices is likely to be a painful exercise, which also costs European companies and consumers, pushing prices to invoices.
European officials know that a gradual trade war could be painful on both sides of the Atlantic. That is why they processed the catalogs: the employees wanted to take into account comments from all over the continent.
The part of the list initially included by whiskey invoices was initially intended to be held on March 31, but in fact, but delayed for further improvement, after Mr Trump threatened to respond to it, slapping a 200 % invoice to all European alcohols coming to the United States. Such a move would be overwhelming to French and Italian winemakers.
The delay came after officials – including France – suggested that whiskey hitting and causing American alcohol reprisals would be a mistake.
This episode underlined the challenge to maintain a fixed and united front in the response to invoices. Countries across the continent have different economic priorities and different appetites for the strike in the United States.
Some countries in northern European countries were hidden that the European Union should be strong in its answer, but Italian Prime Minister Giorgia Meloni called on the idea that Italy must choose between the United States and the “Child” bloc. He has also warned against harsh retaliation.
EU officials had initially hoped to avoid a trade conflict as a whole.
They spent last autumn and at the beginning of the year hanging from carrots-such as markets for US liquid gas-in front of their US counterparts, hoping to avoid a clash.
But this strategy failed. Instead, Washington has got a much more aggressive intake than many analysts and officials has been waiting. This has left European policy -makers fight to find a plan.
Specifically, European leaders are thinking of hitting US services exports – and in particular to large technologies such as Google that are doing an EU huge business.
Several European diplomats have said that targeting technology companies are a separate opportunity if the trade war was escalating and a French official made it clear in public observations last week that online services could be the first in cross -hairs.
However, the real goal is an agreement.
Elon Musk, a technology businessman and Mr Trump’s close adviser, said on Saturday that he hopes that Europe and the United States will move “into a state of zero duty, effectively creating a free trade zone”, speaking during a Videocontence appearance.
European officials have demonstrated the willingness to reduce invoices in cars and other products, so the lower duties in at least some areas are a possibility if the United States is willing to speak.
But the analysis can take time. On Sunday, Scott Bessent, secretary of the Ministry of Finance, said during a television interview that issues with commercial partners were not the “kind you can negotiate in days or weeks”.
