The European Union is preparing its response. The twenty-seven validated reprisals up to 93 billion euros if the United States of Donald Trump had to apply customs duties of 30 % on European imports, as they threatened to do, from August 1.
Europe has merged two lists of American goods to tax from August 7, in the event of a failure of negotiations. A first list up to 21 billion euros had already been adopted, to which was added a second list up to 72 billion euros. A very large number of goods are affected: soybeans, planes, car, but also condoms, opium, pearls or even hair.
Investment and blocked public procurement
In addition to these reprisals up to almost 100 billion euros, the EU also has an “anti-coercion instrument”, which would allow it to go beyond simple customs taxes. This tool, thought at the start to reply to the practices deemed unfair from China, thus allows the EU to block certain investments or access to its public contracts.
Find here all our articles on American customs duties
If the European Union shows the claws and intends to be firm, it keeps a hope of a negotiated solution. The negotiations continue and an agreement seemed to be emerging with American customs duties brought back to 15 % and several exemptions concerning the aeronautical or pharmaceutical sector.
