Europe has a ‘trade bazooka’ against Trump’s trade tariffs
President Donald Trump attended a bilateral meeting with Ursula von Der Luyen, President of the European Commission at the 50th World Economic Forum (Wef) meeting in Switzerland, Switzerland, Davos.
Jonathan Ernst | Reuters
The European Union seems to think whether the “Nuclear Option”, which is described as a “nuclear option” to try to deter him trade disputes, because the 30% tariff threat on EU imports seems to be great.
If some EU member states, including France and Germany, cannot reach a trade agreement with Block US President Donald Trump, it is reported that the “anti-go” measures targeting the United States are reported to use measures. EU Diplomats told Reuters this week.
Measures may see that the EU has limited access to the access of US suppliers to the EU market, excluding them from participation in public tenders in the block, as well as imposing export and import restrictions on goods and services and restrictions on foreign direct investments in the region.
Since Trump’s trade dispute with the block comes to a head, it may also be approaching the EU’s time to deploy what is seen as “commercial bazuka”.
As long as things stop, the White House says that if any trade agreement could not be reached before then, it will apply 30% tariff to the US imports to the US on August 1. He stated that the deadline for application was corrected, but that trade negotiations could continue after this date.
What is pain?
The relations between the US and the EU are at a low level after Trump has repeatedly accused the EU of unjust trade practices when it comes to exchange of goods.
Council of Europe The data shows that the total trade between the EU and the US is 1.68 trillion euros in 2024 ($ 1.97 trillion) in 2024, but while the EU has been carrying out a surplus in goods, both the goods and services have been taken into consideration.
Since Trump’s latest 30% tariff threat appears, the EU thinks options, including counter-tariffs aimed at US imports and potentially challenging anti-chewal instrument (bitter), which was created in 2023 but never used by the EU before.
The pain is designed to be a deterrent against the perceived “economic coercion” of third -party countries, designed to change the EU policy and put into force the “coercive” practices that can harm the business and investments to the block.
The main purpose of pain is “deterrence”, indicates the European Commission, but “if a third country resorts to forcing”, the instrument block will respond through dialogue and participation, if possible, ” At the same time – as necessary – through response measures. “
These answers, whose purpose is to “always encourage the stopping of the coercion”, can go beyond retaliation towards retaliation, and the vehicle also allows import and export restrictions on goods and services, as well as intellectual property rights and direct investments.
Cargo shipping containers are waiting for the container ships at the Burchardkai container terminal in Hamburg port of North Germany on June 3, 2025 by a crane.
Fabian Bimmer | AFP | Getty Images
In addition, anti-raid measures allow the EU to provide various restrictions to the EU market, especially public procurement and US suppliers to access food and chemicals in the block.
According to Reuters, including those of digital service providers, the use of the instrument can also lead to measures affecting the services that the US is surplus with the EU. Amazon– Microsoft– Netflix or Uber.
The European Commission states that the EU’s response measures should be “proportional to the damage they resist and be targeted and temporary” as long as the perceived coercion prevails. “
Before asking the member states to confirm their findings, it will take time for the commission to take action with the process that requires him to investigate possible coercion cases. Later, a qualified majority (at least 15 of the 27 states) will be in favor of adopting painful intervention measures, and even before taking action, he will talk to the perceived criminal to try to solve the dispute.
The CNBC asked the European Commission more comments and awaits a response.
Ticaret Bazuka ‘last resort’
In order to reach a trade agreement with the United States, last -minute negotiations take place, the EU aims to protect a 10% basic tariff agreement and the protection of key industries such as automobiles, agriculture, machines and aviation.
“Although the EU will have a 10% initial tariff with exemptions and quotas that protect the big EU industries, a mutual ratio will probably result in some EU retaliation.” He said.
“The threat of increasing the ratio of Trump to the proportion is seen as a negotiation zone by the EU, not a tactic of negotiation. This will threaten to use the EU’s counter-euros and exports of 116 billion euros and threaten Bloc’s powerful anti-power instruments (bitter) to target Trump.”
On March 6, 2025, the European Commission President Ursula von Der Leyen arrived at the Special Europe Council in the EU center in Brussels to provide continuous support for Ukraine and European defense.
Nicolas Tucat | AFP | Getty Images
Using Pain would be a “commercial bazuka”, Eurasia Group’s Mujtaba Rahman, Emre Peker and Clayton Allen and the last resort.
“While France, Spain and some other EU members will defend a strong retaliation against Trump’s tariffs, [European] It is likely to focus on hitting US goods with more tariffs at the beginning. ”
However, Eurasia’s 10% ‘Trade War’ scenario leads to a staircase spiral, which will encourage “US services exports”, such as “export controls/duties, public procurement and/or US services export export” using the bitter “commercial bazooka”.
