Any reaction from the bloc, by design, will always be the lowest common denominator — a weakness the Trump administration is acutely aware of and keen to use to its advantage. That’s leading the EU executive to seek alternative avenues, such as engaging more closely with other G7 countries, to fend off the impact of the tariffs.
‘No taboo’ on retaliation
Over the weekend, the EU executive, which coordinates trade on behalf of the EU’s 27 member countries, delayed by two weeks the implementation of a first package of countermeasures targeting €21 billion in U.S. exports. That pause will now expire by Aug. 6.
Not to give the impression it’s only folding to Trump, the European Commission is also keen to show it can fight.
So at the same time, it is about to present its second raft of retaliatory tariffs on €72 billion of U.S. exports for formal endorsement by EU countries. This falls short of the €95 billion initially targeted, following intense horse-trading between capitals to shield sensitive sectors from Trump’s reprisals.
“There’s no taboo on Europe’s ability to respond. The moment you restrict yourself, you prevent a certain number of responses, you’re not in a favorable balance of power,” said French Trade Minister Laurent Saint-Martin.
“And that’s perhaps where we need to change our methods,” he added.