OR France The European Union wishes to consider for the first time to develop the strongest US retaliation measure if President Donald Trump uses tariffs to force the block (ed. EU) unjustly in policy changes.
France has joined a small group of EU countries that believes that the so -called anti -coercion medium – a tool designed to counterattacking a nations using commercial and financial measures in a forced way – should be put on the table, according to sources, even if it is not the preferred action.
The US has planned to impose sweep duties on world partners since April 2. Trump said the duties would correct non -tariff barriers that he considers unfairly, such as domestic regulations and the way countries receive taxes, including the EU’s added value tax.
The EU says its VAT is a fair tax without discrimination that applies equally to domestic and imported goods. The means of coercion, which is subject to certain conditions and steps, will eventually allow the EU to develop a wide range of retaliation, including restrictions on trade and services, as well as certain copyright, direct foreign investment and access to public contracts.
The euro fell shortly below 1.08 against the dollar for the first time for two weeks, while German bonds rose and left the 10 -year bond yield two basis points below 2.76%.
Trump escalated the World Trade War this month, imposing 25% duties on steel and aluminum imports, led by the EU to announce its own retaliation to politically sensitive US products worth up to 26 billion euros ($ 28.1 billion).
The forthcoming mutual duties, which will be adjusted for each commercial partner to offset any perceived disadvantage for US companies, could overshadow the metal duties. The European Commission (Commission), the EU executive arm that handles trade issues for the bloc, is currently not considering the means against coercion, another source told Bloomberg.
Any discussions on the use of the tool are distant, as the EU must first see what duties will be announced by the US on April 2, and if the means of coercion is applicable, sources said.
EU trading department leader Maros Sefsovic said on Wednesday (19.3.2025) that he has no details on new US duties and that the Commission should continue preparations and maintain a flexible approach. Because of this, the EU is not expected to immediately determine its response to Trump’s upcoming measures as fast as it did with the metal dispute, one of the sources said, Bloombeg reports.
Sefcovic also announced that the bloc’s response to the metal duties will slip for mid -April, a move that will give more time to negotiate with the US. Commission President Ursula von der Layen and the head of her staff have so far failed to attempt to talk directly with Trump.
The US president has repeatedly attacked the EU by saying that it was created to “take @@@” the US. The medium against coercion was primarily designed to prevent and, if necessary, react to deliberate coercive actions by third countries using commercial measures as a means of pressure on the dominant political choices of the bloc or individual Member States. The countermeasures are projected to be used only as a last resort and must be depending on the level of damage.
The medium came into force as part of the EU’s attempt to strengthen its trade defense after imposing US duties on block exports during Trump’s first government. Another factor was China’s decision to put restrictions on Lithuanian products after the opening of Taiwan’s trade office in the Baltic country.
The Commission may propose the use of the tool, but then it is up to the Member States to determine if there is a case of coercion and whether it should be developed. Throughout the process, the EU will seek to consult with the place where it is forced to find a solution and can also work with similar partners facing similar pressure.