European Union is ready to merge two packages of retaliation measures against US tariffs into a single one if trade negotiations with Washington collapse. These retaliatory tarriffs would be worth nearly €100bn. Levies on US goods would range from aircrafts to whiskey and could be imposed from 7 August.
Commission said on Wednesday, 23 July that it planned to combine two previously prepared separate lists of US goods to be included in any retaliatory moves against the US import tariffs. “To make our countermeasures simpler and stronger, we will merge lists 1 & 2 into a single list,” the Commission’s spokesperson for trade Olof Gill told journalists. “The EU’s primary focus is on achieving a negotiated outcome with the US,” added Mr Gill.
The EU’s primary focus still is on achieving a negotiated outcome with the US. – Olof Gill, Commission’s spokesperson for trade
Gill said the combined list would enter into force on 7 August, though the Commission can suspend the measures for longer. The list includes a wide range of goods imported from US to the EU, including airplanes, cars, food, alcohol, and soybeans. The move must be agreed by EU member states. Vote is expected in the coming days.
Anti-coercion instrument in sight?
According to diplomatic sources cited by various press agencies, the mood keeps hardening in Brussels regarding the trade relations with Washington. Situation began to change after Donald Trump, President of the United States, had rejected an agreement in principle 10 days ago and had threatened 30% tariffs on all EU imports from 1 August.
Germany, the EU trade heavyweight, has so far publicly pushed for a quick deal as its economy suffers from tariffs on its car industry. However, Berlin now favours the use of the Anti-Coercion Instrument (ACI), an EU regulation sometimes dubbed “nuclear deterrent” against economic coercion.
The ACI would enable the EU to retaliate against US with a whole array of measures. These include tariffs and also a potential ban on US services – which would hit the technology sector hard.
