EU considers export curbs to US in response to Trump tariffs
The EU is considering imposing restrictions on the export of certain products to the US in response to Donald Trump's tariff policy, as reported by Bloomberg, citing EU sources. Among the key products that EU countries export to the US are medical devices and aircraft parts.
These export restrictions are being considered as a potential response to American tariffs if the ongoing negotiations between Brussels and Washington fail to produce results.
Bloomberg's sources did not specify which goods might be subjected to these restrictions. Typically, such limitations affect goods of strategic importance to the economy of the importing country. Such measures are also employed by China, which at the beginning of April, in retaliation to American tariffs, introduced export controls on seven categories of rare earth elements crucial for the defence industry and new technology sectors.
What does the EU export to the US?
On Wednesday, EU Commission spokesperson Olof Gill noted that the EU supplies the United States with key products, including components for medicines, advanced mechanical devices, and aircraft parts.
Brussels and Washington are currently negotiating a resolution to the trade dispute initiated by Donald Trump’s administration's decision to impose 20% tariffs on imports from the EU, which were then suspended for 90 days. The minimum rate of 10% remains in effect for all countries, alongside the 25% tariffs on the automotive industry, steel, and aluminium.
The EU suspended the previously announced retaliatory tariffs to, as explained by EU Commission President Ursula von der Leyen, "give negotiations a chance."
One of the EU Commission's proposals in the ongoing negotiations with Washington is the introduction of mutual zero tariffs on industrial goods, including cars. This solution has been supported by Italy's Prime Minister Giorgia Meloni, a supporter of Trump, who visited the White House on Thursday as the first leader of a European country since the start of the tariff dispute.
Brussels is also preparing for the potential failure of negotiations, emphasising that "all options are on the table." In addition to possibly lifting the suspension of EU tariffs on US products and imposing export restrictions, there is also discussion of introducing retaliatory measures concerning US technology services and limiting tender access for US companies.
