Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Da Silva: What is happening in Gaza is not a war, it is a genocide
Da Silva: Even the Jewish people do not want this war; it is revenge by a government against the possibility of establishing a Palestinian state
Brazilian President Lula da Silva: What we are seeing is not a war between two armies. [What we have is a] completely professional army that is killing women and children in the Gaza Strip.
Hamas: We affirm our readiness to immediately begin a round of indirect negotiations to reach an agreement on the points of contention
Hamas: We welcome the continued Qatari and Egyptian efforts to end the war waged by the Zionist occupation against our people
Al Mayadeen's correspondent: Israeli occupation forces blew up Noura Al-Kaabi Hospital, designated for kidney dialysis patients, in the northern Gaza Strip
Al Mayadeen's correspondent: Israeli drone targets a car on the Ayta al-Shaab-Debel road in southern Lebanon
Yemeni Armed Forces Spokesperson Yahya Saree: The remaining airlines that have not yet complied with the ban are urged to take this into serious consideration to ensure the safety of their aircraft and passengers
Yemeni Armed Forces Spokesperson Yahya Saree: The YAF, after successfully imposing a partial ban on air traffic at Lydd Airport, are now working to impose a full ban on air traffic at the aforementioned airport in the coming period
Yemeni Armed Forces Spokesperson Yahya Saree: YAF's UAV Unit carried out three military operations targeting three vital Israeli sites in the occupied Palestinian areas of Yafa, Isdud, and Umm al-Rashrash, using three drones

EU readies response to Trump's tariffs with big tech action: FT

  • By Al Mayadeen English
  • Source: Financial Times
  • 5 Feb 2025 15:02
4 Min Read

The EU is considering a 'bazooka' strategy as its trade ministers back punitive measures if required.

Listen
  • x
  • Bulky heat sink with noisy fan replaced with 1mm (1/25 inch) thin copper plate. (Allied Control / AP)
    Bulky heat sink with noisy fan replaced with 1mm (1/25 inch) thin copper plate. (Allied Control / AP)

The European Union is preparing to retaliate against Silicon Valley if US President Donald Trump proceeds with his threat to impose tariffs on the bloc, potentially triggering a trade war involving services, the Financial Times reported.

The European Commission is considering using its "anti-coercion instrument" (ACI) in a possible dispute with the US, which would allow the EU to target US service industries, including Big Tech, FT reported, citing two officials familiar with the matter.

An official stated, "All options are on the table," pointing to the ACI as the strongest available response that does not violate international law.

Driving the news

The ACI, created during Trump's first term and later used as a deterrent against China, enables the EU to impose restrictions on trade in services if a country uses tariffs on goods to force policy changes.

Trump’s threats, such as using tariffs to pressure Denmark into giving up Greenland or to push the EU to drop enforcement actions against US tech companies, would qualify, according to officials.

The ACI, which came into effect in 2023, is called a "bazooka" by some EU officials. It gives the EU the ability to choose from a variety of retaliatory measures, including revoking intellectual property protections, restricting software downloads and streaming services, or blocking foreign direct investment and limiting access to financial services.

A second official warned, however, that while the EU is experienced with tariffs on goods, it may hesitate to expand the dispute to services and intellectual property rights.

Related News

Preparation for response to US nuclear proposal underway: Iran's FM

Hamas says ready to 'immediately' begin indirect talks for Gaza truce

Why it matters

Last week, Trump said he would "absolutely" impose tariffs on the EU, citing Brussels' actions against US tech companies and the large US trade deficit in goods. He did not provide specifics on when or whether negotiations would occur, similar to Canada and Mexico, which secured a reprieve.

EU trade ministers met on Tuesday in Warsaw to discuss Trump’s threats, with most ministers supporting punitive action if necessary.

Trade Commissioner Maros Sefcovic said as quoted by the Financial Times that he hoped to negotiate a way to avoid tariffs but emphasized, “If we are hit, we will react firmly.”

Sefcovic noted the EU’s large trade deficit with the US in services, despite enjoying a surplus in goods.

Some member states are cautious about escalating the situation, given weak economic growth. "We want to de-escalate," said an EU diplomat involved in the discussions.

What's next 

Any retaliation would need to be proportionate, and the Commission must present evidence of damage to EU industries before seeking approval from at least 15 of the 27 member states. The approval process could take several weeks; the EU's last retaliatory tariffs on the US in 2018 took three months to implement.

In contrast, Canada and Mexico announced retaliatory measures within hours of Trump’s decision to impose tariffs up to 25%. Trump later suspended the tariffs, reportedly in exchange for commitments on immigration and drug trafficking.

Laurent Saint-Martin, France’s trade minister, told the Financial Times that the EU might need faster retaliation this time. "Speed is one of the key issues, we have to be ready faster than last time. We have to be more united and faster."

An EU diplomat noted that the bloc could act quickly in a crisis, referencing its rapid responses to the war in Ukraine and the COVID-19 pandemic.

Read more: Europe may reconsider cooperation with Trump over tariffs: WashPo

  • United States
  • Trump's tariffs
  • Big Tech
  • Donald Trump
  • European Union

Most Read

President Donald Trump and Israeli Prime Minister Benjamin Netanyahu arrive to a news conference in the East Room of the White House, Tuesday, Feb. 4, 2025, in Washington (AP)

Rift widens: Trump, Netanyahu clash in heated phone call over Iran

  • Politics
  • 26 May 2025
An Israeli army vehicle moves in the Gaza Strip as seen from southern occupied Palestine, Thursday, May 29, 2025 (AP)

Hamas rejects Witkoff ceasefire plan, says alters terms

  • Politics
  • 29 May 2025
Lebanon's PM Nawaf Salam meets with US envoy Morgan Ortagus in Beirut on April 5, 2025 (Dalati Nohra via AP)AP)

Morgan Ortagus to exit US role in Lebanon amid policy shift

  • Politics
  • 1 Jun 2025
Spokesperson for the Yemeni Armed Forces, Brigadier General Yahya Saree, announces a new operation against Ben Gurion Airport on May 29, 2025 (Yemeni Military Media)

Yemen announces successful hypersonic missile strike on Ben Gurion

  • Politics
  • 30 May 2025

Coverage

All
War on Gaza

Read Next

All
Russia-Ukraine peace talks resume in Istanbul amid escalating war
Europe

Ukraine, Russia head for Istanbul talks as battles rage, cmdr. resigns

Australia urged to join Macron-led push for Palestinian statehood
Asia Pacific

Australia urged to join Macron-led push for Palestinian statehood

‘Israel’ lost international legitimacy for war on Gaza: Israeli media
Palestine

‘Israel’ lost 'international legitimacy' for Gaza war: Israeli media

MSF Chief: US-Israeli aid plan in Gaza ‘Dehumanising’
Politics

US-Israeli aid plan in Gaza used as tool for forced displacement: MSF

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS