EU considers export curbs to counter US tariffs amid trade row
The EU is considering restrictions on the export of certain products to the US in response to Donald Trump's trade policy, reports Bloomberg, citing EU sources. Key products that EU countries export to the US include medical devices and aircraft parts.
Export restrictions are being considered as one of the options to respond to US tariffs if the ongoing negotiations between Brussels and Washington do not yield results.
Bloomberg's sources did not specify which goods might be subject to restrictions. Typically, such measures involve items of strategic importance to the importing country's economy. Similar strategies are used by countries like China, which, in early April, introduced export controls on seven categories of rare earth elements crucial for the defense and new technology industries, in response to US tariffs.
What does the EU export to the US?
European Commission spokesperson Olof Gill mentioned on Wednesday that the EU supplies the United States with key products, including pharmaceutical ingredients, advanced mechanical devices, and aircraft parts.
Brussels and Washington are currently negotiating a resolution to the trade dispute that was initiated by the Trump administration's decision to impose 20 percent tariffs on imports from the EU, which were later suspended for 90 days. The minimum rate of 10 percent for all countries remains in effect, as well as the 25 percent tariffs on the automotive industry and on steel and aluminum.
The EU suspended the previously announced retaliatory tariffs to "give negotiations a chance," explained European Commission President Ursula von der Leyen.
One proposal put forward by the European Commission in the ongoing talks with Washington is the introduction of mutual zero tariffs on industrial goods, including cars. This solution is also supported by Italy's Prime Minister Giorgia Meloni, who is favored by Trump and visited the White House on Thursday as the first European state leader since the trade tariff dispute began.
Brussels is simultaneously preparing for the possibility of unsuccessful negotiations, emphasizing that "all options are on the table." In addition to reinstating EU tariffs on US products and imposing export restrictions, there is talk of introducing retaliatory measures concerning US technology services and restricting access to tenders for US companies.
