EU Thinks About “Anti-Trump” Duties

According to the Financial Times, Brussels is preparing retaliatory steps in the event of a possible Republican victory and subsequent protectionist crackdown

The European Union fears that the US could launch protectionist crackdowns on the European economy if Donald Trump is elected in the next presidential election. Thus, according to a report in the Financial Times (FT), Brussels is already thinking about a response.

“EU officials believe a carrot-and-stick approach is the best response to Trump’s pledge to impose a minimum tariff of 10%, which they estimate could cut EU exports by about €150 billion a year,” writes Andy Bounds, the paper’s Brussels-based correspondent for the FT.

The EU executive chambers are discussing organizing a negotiating team to “intercept” Trump’s staff before he takes office to discuss “Made in USA” products that Europe will buy in large quantities. If these negotiations fail, the list of goods on which Brussels could impose duties of up to 50% is already ready.

An EU official quoted by the FT explains: “We have to demonstrate that we are a partner to the United States, not a problem. We will seek agreements, but are prepared to defend ourselves if necessary. We will not be driven by fear.”

Trump has announced his intention to impose a 10% customs duty on European imports if he is re-elected as US president. It would be a drain on the European Community’s economy, given that it exports about $150 billion worth of goods to the United States annually, more than the value of goods going in the opposite direction.