The EU threatened Thursday to tax for 95 billion euros in American imports, including cars and planes, in the event of a failure of negotiations to end Donald Trump’s customs duties on European products.
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This European announcement comes at a time when the American president reported a “total and complete” agreement with the United Kingdom, the first of its kind since the launch of his trade war, after weeks of negotiations with London. However, the scope of this American-British agreement remains vague at this stage.
The European executive has announced that it has launched “a public consultation” on a long list of products manufactured in the United States which would potentially be affected by European customs duties.
In addition to cars and planes, this list includes electrical equipment, batteries, household appliances, as well as agricultural (fruits, vegetables) or food products such as spirits, including wines and bourbon.
“Retraisal measures”
These imports “could be the subject of retaliatory measures” if the United States maintained surcharge targeting EU exports at the end of the negotiations in progress.
At the same time, Brussels will seize the World Trade Organization (WTO) against the commercial measures of which it is the victim of the United States.
The European Commission announced that it would “soon” file a request for consultations with the International Organization based in Geneva, the first stage of a dispute settlement procedure, concerning American surcharge. The EU executive denounces “a blatant violation of WTO rules” and intends to “reaffirm the importance of respecting international rules”.
The president of the European Commission, Ursula von der Leyen, however assured that she remained “fully committed” in the search for solutions negotiated with Washington.
-“We believe that it is possible to conclude good agreements for the benefit of consumers and companies on both sides of the Atlantic. At the same time, we continue to prepare for all eventualities, ”she said in a statement.
In recent months, the European Union has been struck three times by customs duties in the US administration: 25% on steel and aluminum, announced in mid-March, 25% on cars, then 20% on all other European products in April.
This last surcharge was suspended until July to try to seek a negotiated outcome at the commercial dispute. But customs duties of 10% are still applied to most of the goods exported to the United States by the twenty-seven.
The EU wants a de -escalation
In mid-March, the European Union has chosen to show muscles replicating in steel and aluminum measures. She then announced customs duties up to 25% on a first list of American imports for 26 billion euros. Are targeted in this first list of emblematic brands such as Harley-Davidson motorcycles, agricultural foods like soybeans, but also household appliances such as refrigerators or lawn mowers.
But the EU’s response has not yet entered into force, unlike the first measures of Donald Trump. European surcharge remains suspended from current negotiations, scheduled until July, and will only be applied only to the failure of the discussions.
“From the start, we have acted with clarity, consistency and a firm commitment in favor of de -escalation. But we will not accept a result at any price, ”warned the European Commerce Commissioner, Maros Sefcovic.
In addition to the goods, the EU has already warned that it could also tax the American tech giants. It could also resort to other instruments such as freezing access to European public procurement, blocking authorizations for the marketing of certain products, or the blocking of investments …
“All the options remain on the table,” said a senior European official on Thursday, on condition of anonymity.
“We are starting to realize that even if we want negotiations, certain American customs duties are at risk of continuing,” he added, describing the preparations announced Thursday for European measures as a means of “rebalancing” exchanges with the United States in the long term.
