MercoPress. South Atlantic News Agency

EU juggling options for if or when Trump imposes tariffs

Sefcovic said the EU's response would be firm

Given US President Donald Trump's tariffs imposition spree that has already hit Mexico, Canada, and China, the European Union (EU) is considering retaliatory measures should these threats materialize. The European Commission is considering using the “anti-circumvention instrument” (ACI), which allows restrictions in response to coerci⁷ve trade actions by other countries.

There seems to be a consensus on such a measure despite concerns among some member states about a trade war. In any case, Trade Commissioner Maros Sefcovic said the EU's reaction would be firm. However, any retaliation must be proportionate and be approved by at least 15 of the EU's 27 member states to avoid internal divisions.

Trump's proposed tariffs on EU products would be seeking to even up the existing US$ 300 billion trade deficit. “They are taking advantage of us,” the Republican leader was quoted as saying. “They're not taking our cars or our agricultural products, virtually nothing, and we're taking everything,” Trump underlined.

The EU is “really out of line” on trade and assured that his administration will take steps to correct the imbalance. “I don't have a timetable, but it will be very soon,” he added.

Although he has backtracked for now on tariffs applied to Mexico and Canada, he served the purpose of imposing other conditions on the governments of those countries.

While the EU values the importance of a swift countermeasure, the consultation process to define it could take weeks. Therefore, any step by Trump in that direction could ignite the beginning of the EU's end given that one-on-one negotiations with the US would be speedier. In addition, EU membership has already played out against some producers within the bloc who were forced to curb output not to exceed their quotas.

Regarding trade with post-Brexit Great Britain,
Trump acknowledged that the relationship is uneven, but expressed confidence that it will be fixed given his good rapport with Prime Minister Keir Starmer, with whom he has already had “a couple of meetings and numerous phone calls.”