[Source/Observer Network Chen Sijia] US President Trump recently signed an executive order regarding the so-called "reciprocal tariff", announcing a 20% tariff on the EU. However, there are different voices within the EU on how to respond to Trump's tariff policy. France and Germany are calling for a "firm response", while Spain and Italy are urging the EU to "avoid conflict".

According to a report by Bloomberg on April 5, senior officials from Spain and Italy issued warnings in their speeches that day, stating that a tariff war between Europe and the United States would result in a "lose-lose" situation, causing serious damage to the European economy. They urged the EU to avoid taking "excessive countermeasures" and continue seeking to resolve issues through negotiations.

Senior officials from many European countries and enterprise representatives attended a business forum held in Chernobio, Italy, on the 5th. Italian Minister of Economy and Finance Giancarlo Giorgetti delivered a speech at the meeting, saying: "We must remain calm, assess the impact, and avoid adopting retaliatory tariff policies, as this will only harm everyone, especially ourselves."

This statement echoed the remarks made earlier this week by Italian Prime Minister Giorgia Meloni. Meloni previously stated that America's tariff policy was wrong, but the Italian government would do its utmost to reach an agreement with the United States to avoid a "trade war." Meloni believes that trade disputes will weaken Western countries and "benefit other global participants."

Carlos Cuervo, Spain's Minister of Economy, Trade, and Industry, also supported the view of the Italian government. He said at the meeting on the 5th: "We still call for resolving issues through negotiations. Raising tariffs and strengthening protectionism is a 'lose-lose' competition. We just need to look at the market's reaction over the past two days; I think this proves the correctness of this argument."

On January 13, Barcelona Container Terminal, Spain, Visual China

Local time on April 2nd, Trump delivered a "Liberation Day" speech at the White House, announcing a "minimum benchmark tariff" of 10% for all trading partners, and imposing higher tariffs on dozens of other countries and regions including China based on the 10% rate. Among them, the "reciprocal tariff" rate imposed by the United States on China is 34%, and the rate on EU countries is 20%.

However, there are divisions within the EU on how to respond to America's tariff policy. While Spain and Italy are calling for "avoiding conflict," the two largest economies in the EU, Germany and France, advocate making a "firm response".

Robert Habeck, the outgoing German Minister of Economics, said on the 3rd that America's tariff policy not only harms American and European interests but also impacts the international trade system. He advocated that the EU respond in a "balanced, clear, and resolute manner", stating: "We are in a strong position. We can join forces with many countries and regions to increase pressure on the United States."

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

Bloomberg reported that Macron also suggested that the EU consider using the "anti-coercion tool" to target American digital services. The EU's "anti-coercion tool," which came into effect in 2023, has never been used before. It allows the EU to retaliate against economic coercion, not only by imposing additional tariffs on goods but also by restricting third-country companies from participating in public procurement projects or limiting service trade and investment.

"No option is off the table, and all tools are under consideration," Macron pointed out that the EU must take the "most effective and appropriate" measures. "We are determined not to let any industry become a victim of these tariffs, so we must defend and protect ourselves."

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