[Text/Observer Network Chen Sijia] Since Trump's return to the White House, the EU has faced a 25% tariff on steel and aluminum and cars imposed by the United States, as well as a "reciprocal tariff" of 20% on almost all other goods. According to a report by Reuters on April 6, EU countries are seeking to reach a unified stance to counteract US tariffs and may approve the first round of countermeasures against $28 billion worth of US goods in the coming days.

The report stated that the European Commission, responsible for coordinating EU trade policy, will submit a product list to member states on the evening of the 7th local time to impose additional tariffs on related US goods. It is expected that this list will include US exports such as meat, grain, wine, timber, clothing, chewing gum, dental floss, vacuum cleaners, toilet paper, etc.

The EU will also hold a meeting in Luxembourg on the morning of the 7th local time, where the trade ministers of the 27 EU member states will discuss the impact of tariffs and response measures. This is the first full EU political meeting since the US announced the imposition of "reciprocal tariffs." EU diplomats told Reuters that the main goal of the meeting is to convey to the US that the EU still hopes to negotiate with the US to cancel tariffs, but is also prepared to take countermeasures if negotiations fail.

An EU diplomat said, "After Brexit, our biggest concern was the breakdown of bilateral agreements and unity, but after three to four years of negotiation, this did not happen. Of course, the situation now is different, but everyone can see our interest in a common commercial policy."

At the same time, the EU also seeks support from the UK on the issue of tariffs. On the 6th, Ursula von der Leyen, President of the European Commission, spoke on the phone with UK Prime Minister Keir Starmer to discuss trade issues. The European Commission issued a statement saying that Von der Leyen pointed out during the call that the "reciprocal tariffs" announced by the Trump administration will cause damage directly and indirectly to all countries.

Von der Leyen reiterated that the EU is committed to negotiating with the US, but if necessary, the EU is prepared to defend its own interests through appropriate countermeasures.

On April 3, Duisburg container terminal, Germany, Visual China

However, there are still differences within the EU on the issue of retaliatory tariffs. The report cited an example: the EU Commission plans to impose a 50% tariff on US bourbon whiskey, while Trump threatened to impose a 200% tariff on EU alcoholic products. Since the US is one of the major export markets for EU alcoholic products, the "tariff war" has caused concerns among French and Italian wine exporters.

EU countries also have different views on countermeasures. Italy and Spain urge the EU to avoid "overly radical responses." According to a report by Bloomberg, Giancarlo Giorgetti, Italy's Minister of Economy and Finance, said at a business forum on the 5th: "We must stay calm, assess the impact, and avoid adopting retaliatory tariff policies, because it will only harm everyone, especially ourselves."

However, France and Germany both advocate for a "tough response." Robert Habeck, the outgoing German Economics Minister, said on the 3rd that the US tariff policy not only harms US and European interests but also impacts the international trading system. He advocated that the EU respond in a "balanced, clear, and resolute manner," stating that "we are in a strong position. We can join forces with many countries and regions to increase pressure on the US."

French President Emmanuel Macron called on EU companies to temporarily suspend investments in the US. At a meeting on the 3rd, he said: "What is important is that future investments should be suspended for a period until we resolve our issues with the US. What message would it send if major European companies invested billions of dollars in the US when they strike us? "

An EU diplomat admitted to Reuters that the EU needs to achieve a "difficult balance": "The measures cannot be too weak to bring the US back to the negotiating table, but they also cannot be too strong to escalate the situation."

As of now, negotiations between the EU and the US have not yielded any results. Maros Sefcovic, EU Trade Commissioner, said that he had a "frank" two-hour discussion with US officials on the 4th local time, emphasizing that US tariffs are "harmful and groundless."

No matter whether the EU can unify its internal stance in the coming days, the EU will vote on preliminary countermeasures on April 9th local time. If 15 EU member states vote against the proposal and their combined population reaches 65% of the total EU population, the proposal will be rejected; otherwise, it will be approved.

President of the European Commission Ursula von der Leyen will also meet with CEOs of EU steel, automotive, and pharmaceutical industries on the 7th and 8th local time to assess the impact of tariffs and determine the next steps.

On April 2nd local time, Trump delivered a speech at the White House, announcing a 10% "minimum benchmark tariff" for all trading partners, with higher tariffs added on top of the 10% for dozens of other countries and regions including China. The relevant policies came into effect on April 9th. Among them, the "reciprocal tariff" rate imposed by the US on China is 34%, and 20% for EU countries.

This article is an exclusive contribution from Observer Network and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7490360580142842377/

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