Following the imposition of steel, aluminum, and auto tariffs, America's major trading partners will face what the Trump administration has tailored as "reciprocal tariffs" on the morning of May 9th in Washington D.C. According to this simple and crude calculation method, the EU, one of America's most important trading partners, will face a "reciprocal tariff" rate of 20%.
In response, European Commission President Ursula von der Leyen stated on the 7th that the EU will establish an import monitoring task force and strengthen the single market to counteract American tariffs. She also mentioned that the EU is open to tariff negotiations but is also prepared to take retaliatory measures if negotiations fail.
Screenshot from the European news website
On the same day, the EU convened a meeting of trade ministers to discuss the impact of the additional U.S. tariffs and exchanged opinions on countermeasures. This is the first meeting of the EU Council since the announcement of the U.S. "reciprocal tariff" policy.
The European Commission proposed to its member states the possibility of imposing a 25% tariff on certain U.S. products. Relevant tariff measures are expected to come into effect on April 15th and mid-May, respectively.
European Commissioner for Trade and Economic Security, Vassiliou, told reporters that the EU is willing to negotiate and has made efforts, but so far there have been no results from contacts with the U.S. side.
Screenshot from Reuters
"The EU's retaliation will be very intense."
The EU is one of America's largest trading partners, with bilateral annual trade exceeding 1.5 trillion euros.
Data shows that the EU's exports to the U.S. account for approximately 15% of the U.S. total imports, with automobiles, machinery, pharmaceuticals, and chemicals being its main export products to the U.S.
Screenshot from the Financial Times of the UK
The unilateral imposition of tariffs by the U.S. government not only violates multilateral trade rules and disrupts global trade order but also directly affects the export interests of European enterprises, casting a shadow over Europe's economic recovery. Especially against the backdrop of major European economies facing challenges such as weak economic growth and high energy costs, the U.S. increase in tariffs on Europe is tantamount to cutting off the foundation under Europe's economy.
Due to investor concerns about the increased risk of economic recession caused by the U.S. "reciprocal tariff," global stock markets experienced a "Black Monday" on the 7th, with all three major European indices falling across the board that day.
Screenshot from Reuters
However, U.S. President Trump rejected the EU's proposal for mutual tariff exemption on the same day, calling it "completely insufficient," and continued to accuse Europe of "cheating" the U.S. on trade issues.
In an interview at the White House, he complained that European countries did not purchase enough American goods and expressed that selling energy to the EU would be key to eliminating the trade deficit with the EU.
"They must buy energy from us... this way we can cut $350 billion (trade deficit) in a week."
Screenshot from Politico USA
The claim that "the EU has been taking advantage of the U.S." has long been around, almost becoming a catchphrase for Trump.
He has consistently accused the EU of causing a "multi-billion dollar" trade deficit with the U.S., which he calls a "atrocity," even claiming that the establishment of the EU was originally intended to "harm the U.S."
Screenshot from Agence France-Presse
But the fact is that although the EU has a trade surplus with the U.S. in goods, it has a trade deficit in services. Compared to this, the scale of Europe's trade surplus with the U.S. is nowhere near as exaggerated as Trump claims.
An expert said, "Trump's description of this imbalance as 'fundamentally unfair' lacks evidence to support it."
Screenshot from France 24 News Website
If the EU imposes counter-tariffs on the U.S., it will be the second Western ally of the U.S. after Canada to rise up in retaliation.
German Vice Chancellor and Economy Minister Harberger attended the EU Trade Ministers' Meeting on the 7th and stated that the U.S. "reciprocal tariff" calculation is nonsense. Although the EU's countermeasures will bring harm, there is no other choice.
French Minister for Foreign Trade Laurent Saint-Martin warned that the EU's response to the U.S.'s new tariff policy could be "very intense."
"The EU's toolbox is very comprehensive. Whether it targets U.S. goods or services, we cannot rule out any options."
Screenshot from Bloomberg
"Europe should quickly learn how to play its cards."
In fact, "not ruling out any options" has become the EU's "reflex reaction" in the face of "America First."
Trump's return to the White House has shown disdain and bullying attitudes toward Europe in various fields such as security, territory, and economy, forcing Europe, which is highly dependent on the U.S. in many aspects, to abandon illusions and seek self-preservation.
In the economic field, the countermeasures being considered by the relatively weaker EU are not limited to traditional trade areas. Countries like France currently suggest avoiding commodity tariff wars and targeting U.S. services, such as imposing a digital tax on U.S. tech giants or strengthening banking regulations to effectively strike at the most profitable sectors of the U.S. economy.
European Commission Executive Vice-President and former French Minister for European and Foreign Affairs, Cervonne, revealed to the media that the EU is considering limiting U.S. companies' participation in EU public procurement projects as a response to the U.S. new tariff policy.
Screenshot from The Daily Telegraph of the UK
The European Council on Foreign Relations (ECFR) previously published a research report pointing out that Trump is accustomed to describing power and influence as "cards." In a way, because Trump holds "cards" and is willing to actively play them, he can coerce Europe on various issues. While the EU should seek to resolve problems through negotiation, any response should primarily be based on what Trump values—power.
This report titled "Brussels Holds the European Card to Counter Trump's Coercion" argues that the U.S.'s prosperity and geopolitical power over the years have benefited from good relations with Europe, meaning Europe also holds a strong card. Therefore, Europe should quickly learn how to play its cards based on weighing pros and cons.
In fact, the EU has several "cards" to counter the U.S. in areas such as trade, technology, infrastructure, finance, and civilian relations. For instance, in the financial sector, the EU and its member states can fully undermine the U.S. dollar's hegemony by adjusting the weight of dollar assets and strengthening euro settlements.
Screenshot from ECFR Official Website Report
However, it should be noted that the EU's biggest weakness at present remains internal unity. The different relationships each member state has with the U.S. and their varying values in the eyes of the U.S. determine that they find it difficult to form a unified voice when making collective decisions regarding the U.S.
To this end, ECFR's report emphasized that in the face of an adversarial U.S. government, the EU must now build a more proactive and coordinated action framework.
"By uniting, Europeans can strongly refute Trump's claim that Europe cannot match him. Ultimately, Europe's strength in this new era depends on whether it can wisely and skillfully integrate and use its resources, transforming the assets of its member states into a 'collective trump card' against U.S. coercion."
Screenshot from ECFR Official Website Report
Original article: https://www.toutiao.com/article/7491858050756723251/
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