(Brussels) The European Union is preparing to target the American services sector, including “Tech”, in the event of the failure of commercial negotiations with Washington on customs duties, European diplomats said at AFP on Thursday.
Donald Trump took the Europeans short last weekend by decreeing customs duties of 30 % on all imports from the EU from 1is august.
Europe still has the hope of finding a negotiated solution with the United States before this deadline, but prepares its response otherwise. Avions, cars, bourbon…: she has already established a list of products that she could tax.
But the EU also plans to target American services, including tech and financial services, likely to be subject to restrictions for example on access to European public contracts.
A diplomat explains that the EU could retaliate in stages, starting by gradually taxing American products, before moving on to services if necessary. When another ensures that the EU has no choice but to respond in a firm way.
EU member states wish to keep all the options open, but support the committee attempts to reach an agreement before initiating reprisals.
EU’s main commercial negotiator, Maros Sefcovic, went to Washington on Wednesday for talks with its American counterparts, but the commission did not give details on these meetings.
Questions remain on Europe’s desire to initiate a trade conflict with Trump if it imposes many customs duties of 30 % on 1is august.
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 thought of as a deterrent instrument to activate after exhaustion of diplomatic roads.
In particular, it would allow the freezing of access to European public contracts or the blocking of certain investments, but requires several months to enter into force.
