The tone rises to both sides of the Atlantic. The European Union is preparing to attack the US services sector, including “technology”, in case of failure of commercial negotiations with Washington in customs duties, European diplomats said on Thursday, July 17 in the AFP.
Donald Trump led Europeans shortly last weekend through the decree of customs duties of 30% in all EU imports since August 1. Europe is still hope to find a negotiated solution with the United States before this deadline, but prepares its response otherwise. Plans, cars, Bourbon …: It has already established a list of products that could be taxed.
Progressive or firm response?
But the EU also plans to address US services, including technological and financial services, which are probably subject to restrictions, for example, on access to European public contracts. A diplomat explains that the EU could retaliate in stages, gradually starting by taxing US products, before moving on to services if necessary. When another ensures that the EU has no choice but to respond firmly.
The EU member states wish to keep all the options open, but support the committee attempts to reach an agreement before initiating reprisals. The main commercial negotiator of the EU, Maros Sefcovic, went to Washington on Wednesday, July 16 for conversations with his American counterparts, but the commission did not give details about these meetings.
There are questions about Europe’s desire to start a commercial conflict with Trump if he imposes many customs tasks of 30% on August 1.
France pushes Brussels to adopt a firm position, to the point of deploying its most powerful commercial tool, “the anti-coercion instrument”, if negotiations with the United States fail. Nicknamed “Bazooka”, this tool was considered a deterrent to activate after the exhaustion of diplomatic roads. In particular, it would allow freezing of access to European public contracts or the blockade of certain investments, but requires several months to enter into force.
Benjamin Haddad, French European Minister, told Bloomberg this week that Brussels’s response should include the possibility of using this tool.
“In this negotiation, you must show strength, strength, unity and determination,” he said. “We can go further” that the countermeasures announced by the European Commission aimed at almost 100 billion euros ($ 116 billion) for US trade.
A wide range of very difficult measures
Therefore, the “Bazooka” in question is the anti-coercion instrument (ACI), a European regulation adopted in 2024 that allows the European Union to react when third countries try to force it political or economically.
If a country uses economic threats or requires commercial sanctions to influence the political decisions of the EU or its member states, the EU can retaliate. ACI is based on EU’s commercial skills (article 207 of the TFEU). It allows a quick, directed and proportional reaction.
ACI is not a fiscal law or a fiscal law. It can be used to impose commercial measures on third -party companies if their government exerts unjustified pressure on the EU, but is not limited to digital services.
For example, if a country threatens to tax European companies or block their access to the market due to an EU decision (such as a digital tax), the EU could use the ACI to respond, including the orientation of the digital services of the country in question. It could prohibit or restrict the importation of certain products (agriculture, electronics, textiles, etc.), suspend authorization to exercise certain companies, limit foreign investments or restrict access to public contracts.
In summary, a wide range of sanctions that would be assimilated to the use of a commercial deterrence equivalent to the atomic weapon in the army. The first use of the ACI would probably cause an even greater transatlantic commercial war.
Donald Trump also warned that reprisals against US interests would only invite his administration to adopt more hard tactics.
Ursula von der Leyen, however, wanted to calm the French ardor. The president of the European Commission told journalists on Sunday that “ACI was created for exceptional situations” and that “we are not yet there.”
Source: BFM TV
