Brussels Concerns and Countermeasures

According to the UKs Financial Times, the EU is preparing for the possible victory of the Republican Party in the US election and the potential resurgence of trade protectionism. The EU is concerned that if Donald Trump is re-elected as US president, the US may take measures to suppress the European economy, particularly in trade. Therefore, Brussels is already considering various countermeasures to address this potential threat.

The EUs Carrot-and-Stick Strategy

Brussels-based reporter Andy Bounds notes that EU officials believe a carrot-and-stick approach is the best response to Trumps pledge to impose a minimum 10% tariff. It is estimated that this could reduce EU exports by approximately €150 billion annually. To this end, the EU is developing detailed response plans.

The EU executive office is discussing the formation of a negotiation team to intercept Trumps aides before he takes office and discuss Europes potential large-scale purchases of US-made products. If these negotiations fail, Brussels has already prepared a list of US products that could face tariffs as high as 50%.

Formulating Negotiation Strategies and Self-Defense Measures

The EUs initial strategy includes engaging in negotiations with Trumps team, attempting to balance the trade deficit by increasing imports of US goods and thereby avoiding a new round of tariff wars. An unnamed EU official stated: We must demonstrate that we are partners of the US, not a problem. We will seek to reach agreements, but if necessary, we are prepared to defend ourselves. We will not be guided by fear.

The EU has already begun preparing for potential trade conflicts by drafting a list of US products that could face high tariffs in response to possible new tariff policies from Trump. This list covers products across multiple sectors, aiming to exert economic pressure on the Trump administration and force it to reconsider its tariff policies.

Current State of EU-US Trade Relations

Currently, the EU exports approximately $150 billion worth of goods to the US annually, a figure that exceeds US exports to the EU. Therefore, if Trump implements a 10% tariff, the EU economy will face significant pressure and challenges. Such a tariff policy would not only increase the cost of European goods in the US market but could also reduce the competitiveness of EU companies in global markets.

Background of Trumps Tariff Plan

During his campaign, Trump repeatedly stated that if re-elected, he would impose a minimum 10% tariff on all EU goods. He believes this measure would help reduce the US trade deficit and protect the interests of American businesses and workers. Trumps tariff plan has drawn strong reactions from the EU, as it would severely impact the European economy.

The EUs Long-Term Response Strategy

To counter the potential trade shock from Trump, the EU is developing a series of long-term response strategies. These strategies include not only negotiations with Trumps team but also strengthening cooperation with other international trade partners, seeking new trade opportunities, and reducing reliance on the US market. The EU hopes to enhance its competitiveness and resilience in the global market through diversified trade relations.