
Europe must respond decisively to the new U.S. tariffs. The EU should start by targeting areas that will hurt Trump and his followers.
Negotiations are all well and good. But it’s about time for the European Commission to start getting its act together — especially now that U.S. President Donald Trump has announced additional 25% tariffs on car imports to the U.S. Shortly beforehand, the relevant EU Commissioner had reported that “substantive talks” had taken place in Washington.
Unfortunately, he was mistaken. The EU is now imposing counter-tariffs. They have been planned for a long time. In mid-March, the EU Commission raised the prospect of imposing European tariffs on U.S.-made jeans, whiskey, motorcycles and peanut butter, among other things, starting Apr. 1, in response to Trump’s increased tariffs on steel and aluminum imports.
However, the U.S. government has exacerbated the situation once again with the additional vehicle tariffs, which apply to all car imports into the U.S. European and German manufacturers are particularly affected because the U.S. is the largest export market for BMW, Daimler, VW and their subsidiary brands. And Trump is already looking forward to his “Liberation Day” on Apr. 2. After that, he will be looking to announce further import tariffs on all kinds of goods, possibly including European pharmaceuticals. The U.S. president has already threatened escalation in the event that the likes of Canada or Europe put up resistance.
A clear response is needed. Hildegard Müller, president of the German Association of the Automotive Industry, has cautioned against causing too much disruption — an understandable stance for a business lobbyist. But the U.S. government just seems to carry on if it isn’t shown a clear stop sign.
Digital Taxes Would Be Lucrative
From the EU’s perspective, one logical measure would be to introduce stricter import duties on material U.S. goods. But intangible products should also be taxed: The EU has been working toward consistent taxation of imported digital services for years. The fact is that U.S. companies Alphabet (Google), Amazon, Meta (Facebook), Netflix and X pay little tax in Germany because their virtual products are not subject to traditional taxation. Digital taxes or tariffs could generate billions of euros in revenue while serving as leverage in negotiations with the U.S. government.
Moreover, X, owned by Trump adviser Elon Musk, initially evolved from a social network to an antisocial one and has most recently turned into a hostile force that is targeting Europe’s legal order and sovereign rights. A trial shutdown of X in Europe for, say, two weeks would be likely to make an impression on the U.S. government.
Leave a Reply
You must be logged in to post a comment.