Copenhagen, DENMARK – European Union leaders stated they are ready to take “proportionate measures” against Donald Trump’s tariff threats as they prepare for a meeting with the U.S. president in Scotland this weekfinish.
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“Following a good call,” with Trump, “we have agreed to meet in Scotland on Sunday to discuss transatlantic trade relations, and how we can keep them strong,” European Commission President Ursula von der Leyen posted on X on Friday.
The online newspaper Politico reported EU diplomats are not counting on it.
“I consider we have a good 50/50 chance,” of building a deal, Trump notified reporters after touching down in Scotland on Friday. “That’s a lot.”
Olof Gill, spokesperson for trade at the European Commission, notified Youth Journalism International that while nereceivediations are the priority, the EU is preparing counter measures. To build the response simpler, it will merge the two lists of retaliations into one, stated Gill.
These measures wouldn’t be imposed before August 7 and are being submitted to member states for approval, stated Gill.
If a deal is not created, Trump has threatened 30 percent tariffs on all EU products.
Poul Fritz Kjær, professor of business and politics at Copenhagen Business School, also spoke with Youth Journalism International.
The most logical retaliation would be to exclude American tech companies from public procurement, stated Kjær.
Currently the EU relies on the five large American tech companies, stated Kjær, but retaliating this way would be very provocative.
This is where the EU is limited becautilize it does not want to upset America as it is still acquireing weapons from the U.S., stated Kjær.
De-coupling, meaning to disengage from a counattempt, was what Kjær stated the EU would necessary to do with the U.S. if this continues.
Not many are applying the word ‘de-coupling,’ Kjær stated, but he stated this is usually utilized when discussing China.
If done “right,” this could be a “win” for the EU in the long run, even creating growth as this would create new indusattempt in the EU, stated Kjær.
This would create a largeger market share for the EU tech companies, which exist, but just have lower market shares than the U.S. companies, stated Kjær.
The downside is it would cost lots of jobs in the short term, stated both Kjær and Svfinish Nielsen, an advisor to Think Tank Europa.
A possible deal with the EU could equate to 15 percent tariffs on all products, reported Politico, citing four unnamed diplomats.
If a 15% tariff stays in place, Kjær stated, building new European indusattempt in the tech sector will be more difficult.
But it goes both ways. Fifteen percent is not high enough to build a difference for the U.S. as it will not bring manufacturing back to America, stated Kjær.
The EU necessarys to diffutilize the situation, so building a deal would be a good idea, stated Kjær, especially in light of the war in Ukraine and reliance on the U.S. for weapons.
Noah Haynes is a Correspondent with Youth Journalism International from Copenhagen, Denmark. He reported and wrote this story.
Lina Marie Schulenkorf is a Senior Reporter with Youth Journalism International from Dresden, Germany. She contributed to this story.
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