US President Trump wants to introduce new tariffs this evening – and Brussels looks at Washington. The European Union plans countermeasures and is preparing for the “maximum escalation”.
For some officials of the EU Commission, a later official date is scheduled for this Wednesday. EU MPs in Strasbourg and business representatives everywhere in Europe are also used for TV remote control, laptop or smartphone. At 10 p.m. of our time, Donald Trump wants to explain in the rose garden of the White House, which he has so far vague as a “day of liberation”. It should then be clearer how much the US president will tighten the trade conflict.
A poking in the fog could end for the European Union. The time then begins to evaluate the extent of the Trump “liberation” in order to then determine the European answer. Does a dangerous spiral of new tariffs and against tariffs begin, which are increasing further – to the disadvantage of everyone? Do you come to the end in Brussels, Trump insert tariffs to influence political decisions on the other side of the Atlantic?
“It is still a kind of dry swimming,” Christian Feld, ARD Brussels, for the preparation of the EU for possible Trump-Zölle
Preparation in politics and business
The EU has enough options. In the EU Parliament in Strasbourg, Commission President Ursula von der Leyen said yesterday: “We don’t necessarily want to strike back, but if necessary, we have a strong plan to strike back and we will apply it.” She does not give details. Who would also uncover your own cards in this trading poker? Waiting for Trump.
Meanwhile, many companies in the EU apparently tried to move what was to be moved at the last minute: containers. The truck snake was getting longer and longer before Terminals in the port of Antwerp. There was talk of hours of waiting times – a snapshot from the past week. But the situation does not seem to be really relaxed, as a demand from Voka, the Flemish Chamber of Commerce, shows. An important reason for the rush at the container terminals are Trump’s announcements.
Many question marks
Trump’s plans are still provided with many question marks. Which products will it hit? Which countries? How big will the serve be? The additional tariffs on steel and aluminum already apply. For example, the EU wanted to put countermeasures on jeans, whiskey and motorcycles on April 1. However, this was postponed – probably with hope for negotiations.
But Trump has long planned: tariffs against cars from Europe are launched. EU Commission President of the Leyen names “semiconductors, pharmaceuticals and wood” as new sectors.
Eye over an eye?
But it could come even harder. There is a far -reaching step behind the bulky term reciprocal tariff: wherever a US trading partner takes a higher customs for a product, Trump wants to repel the same amount. “However, the effect of mutual tariffs would be much lower for Germany than with flat-rate US tariffs of 20 percent,” says Lisandra Flach from the IFO economic research institute. The gap between the tariffs between the USA and the EU is relatively low at 0.5 percent.
EU trade commissioner Maros Sefkovic had hours of talks in Washington with representatives of the US government. A real insight, which Trump wants, apparently did not deliver that, it can be heard. Only Trump’s rose garden appearance can clarify the escalation in order to then react appropriately.
At Services Dominance of the United States
New additional tariffs that the EU imposes are obvious. Daniel Caspary, who is sitting for the CDU in the parliament trade committee, describes it as follows: “If necessary, we will hurt the Americans exactly where it hurts and us as little or not at all.” This could also mean more likely to make the import of US products that are available in Europe.
But will it be enough to limit yourself to goods? A look at the trade balance shows that the USA dominates the USA – possibly an effective lever. “Instead of giving in to trumps in response to trumps, the EU could resign more hard, for example by introducing EU-wide digital tax or stricter data controls,” says Tobias Gehrke from the European Council on Foreign Relationship Research Institute.
Limitations at Capital market access conceivable
In this context, the so-called anti-compulsory instrument could also be used, which the EU has given itself in response to Trump’s first term. It should help if a country uses tariffs to build political pressure. SPD MP Bernd Lange, chairman of the trade committee, says with a view to the current Trump government: “I can also imagine that he may now raise tariffs to put pressure on our legislation in the digital area.” The goal: to weaken the rules that protect consumers in Europe against US tech companies.
The response could be very far: “With the anti-compulsory instrument, the EU can limit access to banking, insurance and capital markets of the EU for American companies, exclude US bidders from public contracts from the EU or limit advertising on US platforms for social media,” said the Green Anna Cavazzini, which presents the committee for internal market and consumer protection.
It would be the greatest possible escalation that grabbed a very, very sharp sword. For the time being, the EU relies on a different course of the trade conflict: Trump decides new tariffs, which can be mitigated in later negotiations. At the same time, the European Union wants to expand trade relationships with other countries or regions and strengthen its own internal market.
