EU Eyes Tariffs on €93 Billion of US Goods
The European Union is negotiating to possibly levy tariffs on €93 billion ($108 billion) worth of US products if President Donald Trump acts on his warning to impose a 10 percent charge on European nations starting Feb. 1.
The EU is considering further countermeasures in addition to the tariffs but will initially seek a diplomatic resolution, as per individuals knowledgeable about the talks. Delegates from the 27 EU nations gathered on Sunday to start formulating options.
EU leaders are set to convene an urgent meeting in Brussels later this week to discuss potential response actions. European Council President Antonio Costa stated in a social media update on Sunday that the countries of the bloc stood together in backing Denmark and Greenland and were prepared “to protect ourselves against any type of coercion.”
On Saturday, Trump revealed a 10 percent tariff on products from eight European nations beginning Feb. 1, increasing to 25 percent in June unless a deal is made for the "acquisition of Greenland." Trump issued the warning after the nations announced they would conduct symbolic NATO military planning drills in the semi-autonomous Danish region.
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UK Prime Minister Keir Starmer condemned Trump's remarks as "utterly incorrect," while Sweden's Ulf Kristersson stated his nation would not be "coerced." French Prime Minister Emmanuel Macron, describing the threat as “unacceptable,” intends to ask the EU to activate its strongest trade retaliation mechanism, known as the anti-coercion instrument.
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The EU's most prompt and concrete response was to suspend the approval process for its July trade agreement with the US, which still needs the European Parliament's endorsement. The European People’s Party, the biggest faction in parliament, announced it would collaborate with other parties to obstruct the ratification of the agreement.
“President Trump has initiated a cascade that endangers decades of transatlantic collaboration,” stated Stefan Lofven, president of the Party of European Socialists, in a statement on Sunday. The party, which has the second largest parliamentary group in Brussels, advocates for pausing the trade agreement and urged the EU to consider utilizing the anti-coercion tool.
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The trade agreement, which numerous people in Europe condemned as excessively one-sided toward Washington, resulted in the EU consenting to eliminate almost all tariffs on U.S. goods. The EU likewise approved a 15 percent tariff on the majority of exports to the US and 50 percent on steel and aluminum. The US has subsequently broadened the range of items subject to the elevated 50 percent rate to encompass numerous extra products that contain the metals.