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The EU plans to hit the silicon valley with retaliation measures if Donald Trump follows threats to impose tariffs on the block, in the first use of the Brussels “basook” that could withdraw services to a trade war.
The European Commission wants to use its so-called “Anti-Co-Co-Coisian instrument” in a potential dispute with Washington, they said two officials who know about plans, which would allow the EU to target US service industries such as BIG Tech.
The clerk said that “all the options on the table” and pointed to ACI as the most difficult response available without a violation of international law.
The tool, which was composed during Trump’s first term and then used as a deterrent to China, allows the EU executive hand to impose restrictions trade In services if he finds that the country uses tariffs on goods to force changes in politics.
Trump’s threat to use tariffs to force Denmark to surrender Greenland and pressure on the EU to fulfill the implementation actions against US technological companies, they would qualify, the officials said.
Some EU officials called “basook” entered into force in 2023, ACI allows the block to choose from a wide range of retaliation measures, such as recalling the protection of intellectual ownership or their commercial exploitation, for example, to take on software and current.
It also allows the EU to block direct foreign investment or limit access to the banking market, insurance and other financial services companies.
Another official warned that, although the EU was experienced in handling tariffs on the goods, he could still pierce the dispute into new areas, including the services and rights of intellectual property.
Trump said last week that he would “absolutely” charge for the EU tariffs, citing Brussels’ action against US technological companies and his great trade deficit in Robbi. Did not give details about when the measures were adopted or whether the block could negotiate a return, as Canada and Mexico secured.
EU trade ministers met on Tuesday in Warsaw to discuss his threats. Officials who met the debates of the closed doors said that most expressed their support from criminal measures if necessary.
Trade Commissioner Maros Sefcevich said he wanted to negotiate a way to avoid tariffs, but he added: “If we are affected, we will react firmly.”
Chief noted that the block had a big deficit with the US in services even though he enjoyed excess goods.
Some Member States are cautious in the fight against a trade war when economic growth is so weak. “We want to make it,” the EU diplomat said with knowledge of discussions.
Each retaliation should be proportional and the Commission would have to provide proof of the damage to the EU industry. He must also seek approval of at least 15 of 27 Member States. Counseling can take several weeks; The last retaliation of the tariff imposed on the US in 2018 it took three months to adopt.
In contrast, Canada and Mexico announced retaliation measures last week within a few hours of Washington’s decision to collect tariffs up to 25 percent.
Trump then suspended the tariffs on both countries, seemingly in exchange for the obligations to overthrow migrants and drug trade.
Laurent Saint-Martin, a French trade minister, told the Financial Times that, despite the ACI, the EU may need to retaliate faster. “Speed is one of the key questions, we have to be ready faster than last time. We have to be more united and faster.”
In March 2018. Trump imposed a 25 percent and 10 percent on olive on Steel on Aluminum. It took the EU three months to approve its retribution to 2.8 billion euros in US goods.
The EU diplomat -said the block could move quickly in crisis, adding: “Look at our response to the Russian invasion of Ukraine or cavid pandemia.”