The president of the European Commission, Ursula Von Der Leyen, said the European Union is prepared to adopt strict trade measures and can impose rates on US Big Techs if negotiations with Donald Trump are unable to end their tariff war against Europe.
In an interview with Financial TimesVon der Leyen pointed out that the EU seeks a “completely balanced” agreement with Washington during.
However, she warned that she is ready to expand transatlantic business conflict to the service industry, including the possibility of a digital advertising tax that would affect groups such as Goal and Google.
“We are developing retaliation measures,” said von der Leyen, explaining that this could include the first use of the EU anti-coercion instrument, with the power to reach service exports. “There is a wide range of countermeasures (…) if negotiations are not satisfactory.”
She observed that this could include fares about the trade of services between the US and the EU, emphasizing that exact measures would depend on the outcome of conversations with Washington.
Von der Leyen also commented that Trump’s trade war caused “a complete inflection point in global trade.” “It’s a point of turning with the United States, no doubt,” he said, adding that “we will never return to the status quo.”
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The president of the European Commission stressed that “there are no winners in this, only losers,” referring to the turmoil in the stock and title markets.
The European Commission has decided to pause its planned retaliation against US steel and aluminum tariffs, which would have impacted about € 21 billion in US imports.
Von der Leyen, who supervises trade policy on behalf of the 27 EU Member States, said the commission had already tried to negotiate with the US, but was instructed to wait until Trump’s announcement on April 2, which imposed a 20% “reciprocal” tariff.
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If negotiations fail, the EU will automatically reactivate the planned retaliation measures in response to US tariffs on steel and aluminum.
In addition, von der Leyen said that new countermeasures to Trump’s “reciprocal” tariffs could direct the huge US service surplus with the EU.
“Companies that offer services make a good deal in this market [da UE]. And the vast majority of services, 80%, come from the US, ”he concluded.
