The European Union is preparing a hard response in the event that President Donald Trump imposes duties on European products, as has threatened in the last few days. Brussels could hit the American technological giants, so dear to the tenant of the White House. This is what the Financial Times reports, citing two European officials aware of the plans.
The European countermeasure to Trump’s duties
The British newspaper claims that the EU Commission could use the “anti-coercion tool” against the Big Tech USA, which allows community executive to impose restrictions on trade in services if it believes that a country is using duties on goods to force political changes. “All the options are on the table,” said an official at the Financial Times, indicating the tool as the hardest response available for the EU without violating international law.
The tool was developed during the first term and used as a deterrent against China. Adopted in October 2023, the tool was conceived as a deterrent against economic blackmail and makes available to the 27 member countries a series of measures to react in a calibrated way to the commercial measures imposed by non-EU countries for political purposes, as in the case of boycotts and duties. Trump threats to impose tariffs to force Denmark to give in Greenland or to push the EU to abandon actions against US technological companies would return to this case, still say the sources mentioned by the Financial Times.
As US technological giants would be affected
Nicknamed “Bazooka” by some European officials when it entered into force in 2023, the “anti -coercion” tool would allow the EU Commission to impose measures such as the revocation of the protection of intellectual property rights or their marketing, for example for downloads Software and streaming services. It also allows you to block foreign direct investments or to limit access to the market for financial companies in the banking, insurance and financial services sectors. However, a second official warned that, while the EU is an expert in the management of duties on goods, it could hesitate to expand a dispute including the services and intellectual property rights.
The use of this tool would implement a commercial war, against which several member countries do not want to fight. Each retaliation must be proportionate, and the European Commission must present evidence of damage to the EU industries. In addition, it will have to obtain the approval of at least 15 of the 27 Member States, with consultations they could last several weeks. In fact, in cases where the coercion by a foreign power is ascertained, the Commission has six months to prepare the most appropriate countermeasure in line with international law and ultimately, regularly updating the Eurocampier and national governments.