[By Guancha Observer Network, Ruan Jiaqi]

After the tariff negotiations with the United States stalled, it was recently reported that the European Union is preparing a "Plan B" to prevent the breakdown of talks. On the 18th local time, Bloomberg News quoted sources as saying that the EU is drafting a proposal to impose export restrictions on certain goods destined for the U.S., as a potential retaliatory measure against Trump's initiation of a large-scale trade war.

According to the sources, these restrictions are mainly intended as a deterrent and will only be implemented if the trade negotiations with the U.S. prove fruitless. The sources did not provide further details regarding the specific restrictions being considered by the EU or which sectors and products would be included.

The media outlet noted that the implementation of such restrictions can take various flexible forms, ranging from setting quotas, issuing licenses, to directly banning the export of specific goods. It is worth noting that such restrictions often target key commodities that are indispensable and irreplaceable in the other country.

The report used China as an example. At the beginning of this month, China announced export control measures for seven categories of heavy rare earth-related items, stepping up its countermeasures against the U.S. These rare earths are widely used in various fields such as smartphones and medicine, while the U.S. has virtually no countermeasure capabilities in related metal processing.

This source also mentioned that export restrictions are one of the alternative options being considered by the EU. Additionally, the EU is also considering increasing the tariff list and restricting U.S. companies' participation in EU public procurement projects as countermeasures. A spokesperson for the European Commission refused to comment on this matter.

The media outlet mentioned that last week, European Commission President Ursula von der Leyen hinted that there is a possibility of expanding the scope of countermeasures to include U.S. services, potentially imposing tariffs on digital technology companies. However, some sources pointed out that any further actions beyond the current tariff scope require approval and decision-making by EU member states before entering the substantive stage of formulating plans.

EU-U.S. trade situation. Chart by Bloomberg News

Earlier reports by Bloomberg News stated that this week, the EU and the U.S. made little progress in bridging their trade differences. Two EU diplomats confirmed that officials from the Trump administration have informed the EU side that most of the tariffs imposed on the EU will not be lifted, including the 20% reciprocal tariff temporarily reduced to 10% within 90 days, as well as other tariffs targeting industries such as automobiles and metals.

Meanwhile, the U.S. is advancing its tax plans for semiconductor and pharmaceutical imports. Currently, the U.S. has imposed new tariffs on approximately 380 billion euros (about 432 billion USD) worth of EU goods.

The media outlet reported that the negotiations between the two sides to resolve the trade conflict have progressed slowly and are almost at an impasse.

On Monday (the 14th), European Commissioner for Trade and Economic Security, Sabine Weyand, held a two-hour meeting in Washington with U.S. Commerce Secretary Luetnik and U.S. Trade Representative Greer. However, after the meeting, Weyand remained unclear about the U.S. position and could not ascertain the true intentions behind the U.S. negotiation efforts.

At this time, on Thursday (the 17th), Italian Prime Minister Giorgia Meloni began her visit to the U.S. She is the first European leader to meet with Trump since the U.S. announced reciprocal tariffs. Some sources said that EU officials hope Meloni can persuade Trump to give his trade officials clearer negotiation mandates. However, earlier, a White House official told Politico that Trump believes the EU is taking advantage of the U.S., so the EU will not be part of their conversation.

Before their meeting, Trump said he was "very confident" about reaching an agreement with the EU. He also said he expects to finalize trade agreements with all countries within "three to four weeks."

According to CNN reports, Trump compared the U.S. to a once-great department store that has gradually declined due to the internet wave, and stated that other countries are eager to sell their products in the U.S. market. "Everyone wants to get a piece of this store," he added.

He then said, "If at some point we cannot reach agreements with trading partners, then we set up tariff barriers and inform them, 'If you want to do business, you must follow our rules.' If these trading partners cannot accept our tariff policies, they can choose not to do business in the U.S."

In addition, according to reports by The New York Times and others, during the meeting, Trump told Meloni that the EU and the U.S. "will definitely" reach an agreement "at some point." However, he added, "We are not in a hurry." Trump also said he was pleased with the expected revenue the U.S. government would receive from tariffs.

Meloni, on the other hand, expressed her "confidence" in reaching an agreement with the U.S., calling the U.S. a "reliable partner." BBC reported that Meloni "pushed all the right buttons for Trump": she told him her goal was to "make the West great again," criticized "woke culture," and supported "the war on illegal immigration."

As the White House official said, according to BBC reports, during the "lengthy" Q&A session held in the Oval Office of the White House that day, Trump and Meloni did not focus on U.S.-Italy relations, nor did they discuss EU-related topics extensively. They seemed more inclined to steer the conversation toward areas where they reached consensus, such as immigration issues.

According to British media, "We have hardly received any substantial information about the trade agreement between the U.S. and the EU, and we know nothing about its specific framework and content. Trump only vaguely expressed some optimistic expectations."

According to CNN reports, Meloni revealed that Trump had accepted her invitation to visit Italy. She added that Trump would also have the opportunity to meet with other European leaders at that time.

Trump also announced on the same day that, at the invitation of King Charles III of the UK, he plans to visit the UK in September. During the visit of UK Prime Minister Keir Starmer to the U.S. in February, he handed over a handwritten letter from Charles inviting Trump for a second state visit to the UK.

Trump said, "I am deeply honored to be friends with Charles. We really respect the British Royal Family. I heard they are finalizing the specific visit date for September."

This article is an exclusive contribution by the Guancha Observer Network and cannot be reprinted without permission.

Original article: https://www.toutiao.com/article/7494460039860765194/

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