EU prepares to hit Silicon Valley in retaliation to Trump’s tariffs - FT
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The European Union is preparing to strike Silicon Valley as a possible response if US President Donald Trump follows through on his threats to impose tariffs on the bloc, Financial Times reports.
As the agency notes, this will be the first Brussels hit, which could drag the services sector into a trade conflict.
The European Commission intends to use its "anti-coercion tool" in a potential clash with Washington, which would allow the EU to target US services sectors, in particular large technology companies.
One official said that "all options are on the table", and highlighted the anti-coercion tool as the strongest response possible without violating international law. It also allows the EU to block foreign direct investment or restrict market access for banking, insurance, and other financial companies.
If this happens, the scenario could be as follows: softening the negative reaction in anticipation of negotiations and suspending/postponing the introduction of tariffs.
EU measures
EU leaders said at an informal summit on February 3 that Europe has the option to respond to new US tariffs if President Donald Trump follows through on his recent threats. European leaders have vowed to retaliate if necessary.
For months, the EU has been working on a set of potential countermeasures if Trump imposes tariffs, although details of the list have been closely guarded.
EU leaders are making every effort to remind the Trump administration of the economic value of EU-US trade, as well as the risks of provoking a trade conflict with its closest allies.
For more on the trade war, read RBC-Ukraine's article.
