[Source/Observer Network, Chen Sijia] According to a May 6 report by Bloomberg, EU Trade Commissioner Šefčovič stated on the same day that after the U.S. conducted trade investigations on pharmaceuticals, semiconductors, critical minerals, and other products, American tariffs could cover 97% of EU exports to the U.S. He emphasized that such tariff policies are unacceptable, and if EU-U.S. negotiations fail, the EU will take retaliatory measures.
Sources told Bloomberg that if negotiations fail to yield results satisfactory to the EU, the EU plans to impose tariffs on $100 billion worth of American goods. It is expected that the EU will discuss proposed retaliatory measures with member states as early as Thursday local time.
Šefčovič delivered a speech to the European Parliament in Strasbourg, France on the 6th. He said that the U.S. may impose tariffs on goods imported from Europe, including timber, pharmaceuticals, semiconductors, critical minerals, and trucks, which will additionally affect more than €170 billion worth of EU goods, increasing the total amount of EU goods subject to U.S. tariffs to €549 billion.
Šefčovič pointed out that currently, American tariffs already cover 70% of EU goods traded with the U.S., and President Trump's investigation into EU-U.S. trade will increase this figure to 97%. "These import taxes are unreasonable and cause economic damage on both sides of the Atlantic. This situation is unacceptable, and we cannot sit idly by."
Šefčovič informed the European Parliament that negotiations remain the EU's preferred solution; however, if negotiations fail, the EU is also preparing retaliatory measures to rebalance EU-U.S. trade relations. He also mentioned that the EU is taking action to diversify its trade and investment relationships with countries around the world and minimize the impact of deteriorating EU-U.S. trade relations.
In addition, Šefčovič claimed that the EU will guard against the risk of cheap goods flooding the European market due to U.S. trade barriers. "We are monitoring the potential risks of trade diversion through a specialized import supervision task force, and the preliminary results of this work are expected to be released in mid-May."
EU Trade Commissioner Šefčovič Video screenshot
Bloomberg reported that Šefčovič is in contact with the Trump administration, and it is expected that he will submit a document to the U.S. this week in an attempt to launch trade talks. The EU's proposal may include reducing trade and non-tariff barriers, promoting European investment in the U.S., cooperating to address strategic challenges, and purchasing more American goods.
Meanwhile, the EU has been compiling a list of American goods to consider imposing retaliatory tariffs on related goods and discussing whether to implement export restrictions.
Sources told Bloomberg that if negotiations fail to yield results satisfactory to the EU, the EU plans to impose tariffs on $100 billion worth of American goods. It is expected that the EU will discuss proposed retaliatory measures with member states as early as Thursday local time, and consultations may last for up to a month before the final list is determined.
Reuters pointed out that the 27 EU member states are facing 25% tariffs on steel, aluminum, and cars imposed by the U.S., as well as a 10% "reciprocal tariff" on other goods. After Trump's 90-day deferral period, the "reciprocal tariff" rate facing the EU may rise to 20%. The EU has suspended its retaliatory measures against U.S. steel and aluminum tariffs to create space for negotiations, but progress has been minimal.
The New York Times reported that a new study by the European Central Bank shows that as Trump ignited the "tariff war," European consumers have begun avoiding purchasing American products and services. "The new trade tariffs imposed by the U.S. on European products have led European consumers to be cautious about what they put in their shopping carts, and consumers are very willing to voluntarily stay away from American products and services."
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