【By Observers Network, Shao Yun】On July 17, the "Politico" news website's European edition cited sources saying that the EU is planning a third round of countermeasures against US President Trump's tariff disputes, mainly targeting service trade and government procurement.

Four EU diplomats revealed that on July 14, EU Commissioner for Trade and Economic Security, Valdis Dombrovskis, proposed this idea at the EU trade ministers' meeting and said the EU is preparing for such non-commodity measures.

The report pointed out that this is because after the first two rounds of countermeasures, the EU's "ammunition" for retaliatory tariffs has nearly run out. An EU diplomat said: "It's clear that our countermeasures in the goods sector have been exhausted, they must start researching measures in the service sector. If Trump comes up with something like pharmaceuticals or semiconductors again, we need to be prepared."

However, according to diplomats, the proposal has received a cautious response among EU member states. Most countries are worried about which products will be targeted and whether this will trigger further retaliation from Washington.

Photo: Dombrovskis, "Politico" news website's European edition

Currently, the EU is still trying to reach a trade agreement with the US. Earlier this year, the EU had already approved the first round of counter-tariffs against the US, involving 21 billion euros worth of goods exported to the US, but this measure was suspended until August 6th to allow for negotiations.

After Trump announced on July 12 that he would impose a 30% tariff on EU imports from August 1st, the EU Commission proposed the second round of countermeasures on the 14th, covering planes, cars, machinery, and agricultural products, worth 72 billion euros, pending approval.

Differing from the long-term trade deficit in goods trade, the US has long maintained a surplus in services trade with Europe. According to the "Politico" news website's European edition, if tensions escalate, this could become a "fatal weakness" for the US. In fact, within the EU, whether to target the service sector has already been a topic of discussion, but due to the hope of reaching an initial agreement, this option was once put on hold.

Although Trump only recently threatened to raise tariffs again, European countries still differ on whether to further increase their leverage in negotiations with the US. According to one EU official, current discussions within the EU are still "precautionary" in nature, aimed at preventing negotiations from collapsing at the last minute. "The basic principle is, if it doesn't work out in the end, don't wait until there's no way back to ask what to do."

According to reports, countries such as France have consistently urged Brussels to take a tougher stance in negotiations with the US. Even French President Macron called for using the EU's most powerful "anti-coercion tool" (ACI) to strike American services. The ACI would allow the EU Commission to restrict American companies from participating in EU public procurement tenders or further limit the operations of large technology companies in the EU.

However, to activate the ACI, support from at least 15 of the EU's 27 member states is required. According to diplomats, current willingness among countries is low.

The report stated that two diplomats said at the ministerial meeting on the 14th, Dombrovskis indicated that the Commission prefers to use its "Implementation Regulation." This regulation was strengthened in 2021, authorizing the EU to prohibit companies from trade partners who violate agreements and harm EU commercial interests from participating in EU public procurement tenders.

"At the meeting, we discussed: we have the first list, now we have the second list, should we also prepare a third list containing more different types of measures," said Lithuanian Foreign Minister Birutė Budrys to the "Politico" news website's European edition after the meeting.

Regarding the report, the EU Commission declined to comment.

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Original: https://www.toutiao.com/article/7528444512420266538/

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