The EU should not waver in its response to the imposition this week of blanket US tariffs of 20% and may inflict as a lot harm as potential on the US, a former head of the European Fee’s commerce division has informed Euronews.
“We have to take retaliatory measures which are proportionate to the harm attributable to the US and inflict the utmost potential financial and political harm on the US,” mentioned Jean-Luc Demarty, director-general of the Fee’s DG Commerce between 2011 and 2019.
“If we inflict financial harm on the US, it should result in political harm. US voters base primarily their vote on the economical state of affairs of their nation,” he mentioned.
In keeping with the previous EU senior official, the EU should hit the US with equal tariffs on US items, avoiding these the EU wants.
“We have to take motion by first making use of equal tariffs on various merchandise that the People export to us, however in fact by minimising the harm to us, which suggests by selecting merchandise that aren’t important and that may be discovered elsewhere,” Demarty mentioned, including: “The EU mustn’t goal US merchandise, corresponding to US shale gasoline, soy, various US technological merchandise, or as an example US semi-conductors.”
He additionally believes that the EU might want to deploy its anti-coercion device adopted in 2023, which permits the bloc to limit entry public procurement, and to deprive corporations of rights corresponding to IP licences.
“There may be clearly coercion. Trump is denying us the power to use tariffs which, in some instances, are increased than US tariffs and in some instances decrease. Nonetheless, our tariffs are authorized and adjust to WTO guidelines,” he claimed, including that Trump’s remedy of VAT and various EU laws as efficient ‘tariffs’ can be tantamount to coercion.
Companies ought to be a chief goal within the EU response, Demarty mentioned, as a result of the US has a commerce surplus with the EU on providers.
“We have to hit digital providers and likewise monetary providers to break important American pursuits, each financial and political,” the previous EU senior official mentioned, “ if we hit these sectors arduous sufficient, they [big tech and financial firms] will inform Donald Trump ‘sufficient is sufficient’.”
Demarty mentioned US huge tech and Wall Road companies carry important political affect. “In the US, political events are privately funded with large sums. So this may have a political affect.”
Demarty, who negotiated with the US throughout the aluminium and metal commerce battle underneath the primary Trump administration, in 2018, identified that the US administration with which the EU should now negotiate has develop into extra radical, making the EU’s process harder.
“In 2018, there have been nonetheless individuals round Trump who have been in favour of a sure openness to commerce. At the moment, there are solely half-crazy individuals round him who’re in favour of closing markets,” Demarty mentioned, including: “The EU must hit it arduous and never lie down.”
