Europe has a ‘trade bazooka’ against Trump’s trade tariffs

It seems that the European Union is considering whether the “anti-liver tool”-which is characterized by being a “nuclear option” to try to deter commercial conflicts-will be published by a 30 % tariff threatening at the European Union imports.

It is said that a number of European Union member states, including France and Germany, are said to be considering using “Arch Control” measures targeting the United States if the bloc is not able to reach a business deal with US President Donald Trump, European Union diplomats told Reuters this week.

Monits can see that the European Union restricts the arrival of American suppliers to the European Union market, with the exception of participation in public tenders in the bloc, as well as setting export and import restrictions on goods and services, and borders on foreign direct investment in the region.

Time can be approached to publish what is seen as the “commercial bazll” of the European Union as well, as Trump’s trade conflict with the bloc reached his head.

As in matters, the White House says it will impose a 30 % tariff on the imports of the European Union to the United States on August 1 if a commercial deal is not reached before that. She said the deadline is fixed, but he noticed that commercial negotiations can continue after that date.

European Council Data shows that the total trade between the European Union and the United States amounted to 1.68 trillion euros ($ 1.97 trillion) in 2024, but while the European Union was running a trade surplus in goods, he recorded a deficit in services with the United States when both goods and services were taken into account, the mass was a surplus of about 50 billion euros last year.

Since Trump’s recent introductory threat is 30 %, the European Union is studying its options, including anti -reporters targeting American imports, as well as an ACI, which was created in 2023 but was not used by the European Union before.

ACI is designed to be a deterrent against any “economic coercion” imagined from the third -party countries seen as “forced practices” designed to change the policy of the European Union, which can harm trade and investment in the bloc.

The primary goal of ACI stipulates “deterrence”, as the European Commission says, but “if there is a third country that resorted to coercion”, then the tool enables the bloc to respond, “wherever it is possible through dialogue and participation, But also – as necessary – through response measures“

These responses-whose goal is to “always urge coercion” to exceed the opposite anti-carriers, as the tool also allows import and export restrictions on goods and services, but also on intellectual property rights and foreign direct investment.

In addition, the European Union’s arc control measures allow the imposition of various restrictions on reaching the European Union market, especially to public purchases, as well as the ability of American suppliers to sell food and chemicals in the mass.

The use of the tool can also lead to measures that affect the services that the United States has a trade surplus with the European Union, according to Reuters, including those in digital service providers. Amazonand Microsoftand Netflix or Uber.

The European Commission notes that the European Union response measures must be “proportional to the damage it contradicts, and it must be targeted and temporary”, by applying as long as the perceived coercion prevails.

It will also take time for the committee to act, as the process requires that it is achieved in possible coercion cases before the member states are required to confirm its findings. After that, the qualified majority (at least 15 states of the states) will be asked to be in favor of adopting the ACI response measures, and even before it was implemented, the committee will hold talks with the perpetrator to try to resolve the conflict.

CNBC requested more comment from the European Commission and is waiting for a response.