{"id":17549,"date":"2025-04-05T07:30:30","date_gmt":"2025-04-05T07:30:30","guid":{"rendered":"https:\/\/site.itshrt.com\/worldnews\/europe-has-economic-power-can-it-use-it-against-trumps-tariffs\/"},"modified":"2025-04-05T07:30:30","modified_gmt":"2025-04-05T07:30:30","slug":"europe-has-economic-power-can-it-use-it-against-trumps-tariffs","status":"publish","type":"post","link":"https:\/\/site.itshrt.com\/worldnews\/europe-has-economic-power-can-it-use-it-against-trumps-tariffs\/","title":{"rendered":"Europe Has Economic Power. Can It Use It Against Trump\u2019s Tariffs?"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\r\n<br \/>\n<\/p>\n<div data-testid=\"companionColumn-0\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">The European Union, taken as a whole, is America\u2019s biggest trading partner. That makes President <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/article\/trump-tariffs-canada-mexico-china.html\" title=\"\">Trump\u2019s fresh tariffs<\/a> especially painful for the 27-nation bloc \u2014 but also gives it a uniquely large amount of economic weight to throw around in response.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">In the hours after Mr. Trump\u2019s <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2025\/04\/03\/business\/economy\/trump-tariffs-trade.html\" title=\"\">sweeping tariff announcement<\/a> on Wednesday, European leaders began to make clear that they plan to do so.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Among the options: to impose trade barriers on U.S. services firms, in particular giant technology companies like Google who do a huge amount of E.U. business. And policymakers are already finalizing lists of jacked-up tariffs that could go into effect as soon as mid-April. Member state representatives are expected to vote on them next week, a senior European official said on Thursday, speaking anonymously to brief reporters.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Officials could add to those lists in the coming weeks, in response to both auto tariffs and Mr. Trump\u2019s freshly announced 20 percent levy on the European Union. They have not yet committed to a specific plan.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-1\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Commenting on the new U.S. tariffs early Thursday morning, Ursula von der Leyen, the president of the E.U. executive arm, said, \u201cThere seems to be no order in the disorder, no clear path to the complexity and chaos that is being created,\u201d adding that Europeans felt \u201clet down by our oldest ally.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The European Union was built around free trade and cooperation, and its leaders remain adamant that tariffs are bad for everyone. Europe is still trying to push for active discussions, and the E.U. trade commissioner said <a class=\"css-yywogo\" href=\"https:\/\/x.com\/MarosSefcovic\/status\/1907739771943759873\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">on social media<\/a> on Thursday that he would speak to his U.S. counterparts tomorrow.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">But American officials have <a class=\"css-yywogo\" href=\"https:\/\/ec.europa.eu\/commission\/presscorner\/detail\/en\/speech_25_840\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">so far shown<\/a> little appetite for quick resolution. Mr. Trump\u2019s cabinet members have at times been hard to reach, or have even <a class=\"css-yywogo\" href=\"https:\/\/www.politico.eu\/article\/kaja-kallas-marco-rubio-scheduling-issues-meeting-washington\/\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">canceled meetings<\/a> on their European counterparts.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-2\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">While Howard Lutnick, the commerce secretary, has been talking with the trade commissioner, it is unclear how much influence Mr. Lutnick has over what ultimately happens.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-3\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">At the same time, the White House has made a habit of criticizing the E.U., with Mr. Trump expressing a consistent animosity. He has not met with Ms. von der Leyen since taking office. He has said the bloc was created to \u201cscrew\u201d the United States. During the Rose Garden announcement of his new tariffs, he said the E.U. ripped America off in a way that was \u201cpathetic.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Later on Wednesday, Mr. Lutnick told Fox News that Europe refused to take American beef \u201cbecause our beef is beautiful \u2014 and theirs is weak,\u201d calling it \u201cunbelievable.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The fresh wave of tariffs are Mr. Trump\u2019s latest move to <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2025\/03\/31\/world\/trump-foreign-policy-trust.html\" title=\"\">shake up the way America\u2019s alliances operate<\/a>. The White House is already pressuring Europe to spend more on its own defense and has backed away from supporting Ukraine in its war with Russia in a way that has <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2025\/02\/27\/world\/europe\/trump-eu-allies.html\" title=\"\">sent shock waves<\/a> across the continent.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The United States\u2019 pivot on military issues is front of mind as E.U. defense ministers meet Thursday in Warsaw, and as NATO foreign ministers also gather in Brussels. Marco Rubio, the U.S. secretary of state, is <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2025\/04\/03\/us\/politics\/rubio-visits-nato.html\" title=\"\">at the NATO meeting<\/a>.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-4\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">But the deepening trade war is further turning the trans-Atlantic partnership into a trans-Atlantic rift, and Mr. Trump\u2019s latest announcement could have far-reaching consequences that forever change the relationship between America and its longstanding allies.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-5\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">The E.U. is arguably America\u2019s most important economic relationship. It <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2025\/04\/02\/business\/economy\/trump-tariffs-chart.html\" title=\"\">alone<\/a> is responsible for nearly a fifth of American imports, and European consumers are a huge <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2025\/04\/02\/business\/economy\/tariffs-foreign-goods-tariffs-us-services.html\" title=\"\">market for American services<\/a>.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Still, Americans officials have made it clear that what they want is to reorder the global trading system, which has left Brussels grasping for tools that could give it some advantage in discussions.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">That\u2019s where services could come in.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">European officials have already produced plans to put tariffs on a wide range of physical products in response to the recently imposed <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2025\/03\/12\/us\/politics\/trump-tariffs-steel-aluminum.html\" title=\"\">steel and aluminum levies<\/a>.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Officials could tariff additional goods in response to <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2025\/04\/03\/business\/trump-auto-tariffs-car-prices.html\" title=\"\">car tariffs<\/a> and the newly announced wave. But their firepower when it comes to physical products is somewhat limited: Europe sells Americans more goods than it buys from them.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-6\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">In services, that balance is reversed. European consumers are a huge market for American technology products in particular, from search engines to cloud services. In 2023, the European Union ran a service deficit with the United States of <a class=\"css-yywogo\" href=\"https:\/\/ec.europa.eu\/commission\/presscorner\/detail\/en\/qanda_25_541\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">109 billion euros<\/a> (nearly $120 billion).<\/p>\n<p class=\"css-at9mc1 evys1bk0\">While that makes targeting services trade a potentially powerful tool, it is also a largely untried one.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-7\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Brussels has several tools in its arsenal that could target services, but by far the most powerful option is a new weapon it calls its \u201cAnti-Coercion Instrument.\u201d Created <a class=\"css-yywogo\" href=\"https:\/\/ec.europa.eu\/commission\/presscorner\/detail\/en\/ip_23_6804\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">in 2021<\/a> and in force <a class=\"css-yywogo\" href=\"https:\/\/www.wilmerhale.com\/en\/insights\/client-alerts\/20240401-the-eu-anti-coercion-regulation-a-new-tool-against-economic-pressure\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">only since 2023<\/a>, it allows the E.U. to hit a trading partner with a \u201cwide range of possible countermeasures.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Such measures could include tariffs, restrictions on trade in services and limits on trade-related aspects of intellectual property rights. That means that the E.U. could hit big technology firms, like Google. Several European diplomats said its use was a distinct possibility, should the trade war escalate.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-8\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">A French official <a class=\"css-yywogo\" href=\"https:\/\/www.france24.com\/en\/live-news\/20250403-eu-to-target-us-online-services-after-trump-tariffs-france\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">made it clear<\/a> on Thursday that online services could be in the cross hairs, and German officials also talked about the need to <a class=\"css-yywogo\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2025-04-03\/germany-and-france-push-for-a-more-aggressive-tariff-response?embedded-checkout=true&amp;sref=zVYYYI5e\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">increase pressure<\/a> on the United States.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Using the weapon requires deliberations within the E.U. and efforts to rectify the problem with the trading partner. The quickest restrictions could be fully in place is probably about six months, said Joanna Redelbach, who is counsel at the law firm Van Bael &amp; Bellis and who has closely <a class=\"css-yywogo\" href=\"https:\/\/www.vbb.com\/media\/Insights_News\/20-02-2025_What_is_the_EU%E2%80%99s_Anti-Coercion_Instrument.pdf\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">analyzed<\/a> it.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Still, it is a potentially powerful threat.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cOnce it is triggered, the commission can go very far in how it responds,\u201d she said, referring to the E.U. executive arm, the European Commission.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Using the tool would escalate a trade war that Brussels has up until this point been trying to de-escalate. And Europe often lacks homegrown alternatives when it comes to search engines or cloud services.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cIt would be carefully calibrated,\u201d said Jorn Fleck, senior director with the Europe Center at the Atlantic Council, a research institute. \u201cIt\u2019s a difficult thing to do.\u201d<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-9\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Yet for Europe, it is becoming clear that easy options are few and far between.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cTo prevent full escalation, we\u2019d need to see progress over the next two to four weeks,\u201d said Mujtaba Rahman, managing director for Europe at the Eurasia Group, a political research firm.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">But he added that the challenge, and the reality that could lead to a painful escalation before de-escalation, was that the Trump administration seemed to respond not to carrots and offers to negotiate \u2014 the tactics Europe has tried so far \u2014 but to shows of strength.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cYou have to punch the administration in the face,\u201d he said. \u201cThe punch has to land.\u201d<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/www.nytimes.com\/2025\/04\/03\/world\/europe\/tariffs-response-trump.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The European Union, taken as a whole, is America\u2019s biggest trading partner. That makes President Trump\u2019s fresh tariffs especially painful<\/p>\n","protected":false},"author":1,"featured_media":17550,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[239,114,151,1907,569,338,751,113,168,1909,1908],"class_list":["post-17549","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-world","tag-customs-tariff","tag-donald-j","tag-europe","tag-european-commission","tag-european-union","tag-international-trade-and-world-market","tag-protectionism-trade","tag-trump","tag-united-states","tag-ursula","tag-von-der-leyen"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Europe Has Economic Power. Can It Use It Against Trump\u2019s Tariffs? - World News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/site.itshrt.com\/worldnews\/europe-has-economic-power-can-it-use-it-against-trumps-tariffs\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Europe Has Economic Power. Can It Use It Against Trump\u2019s Tariffs? - World News\" \/>\n<meta property=\"og:description\" content=\"The European Union, taken as a whole, is America\u2019s biggest trading partner. 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