EU readies retaliatory list targeting US services
If they don't clinch a deal by August 1, Brussels has warned it will have no choice but to retaliate against Trump's steep levies because of their economic impact, and has drawn up two lists of US goods to target.
The European Commission, steering trade policy for the 27-country bloc, is also working on a list of American services -- including financial services -- it could hit with restrictions, for example on public procurement, EU diplomats said.
It could also mean excluding certain suppliers, one diplomat said, adding that the commission had not yet put forward any list to EU member states.
Any action on services would be in addition to two sets of retaliatory tariffs on goods: one put forward this week that targets 72 billion euros ($83 billion) of US products, and another worth 21 billion euros, drawn up in response to steel and aluminium tariffs.
One EU diplomat said the bloc could retaliate step-by-step, hitting the United States with first the smaller, then the larger counter tariffs on goods -- before potentially escalating to services.
The official also stressed the EU had yet to even approve the measures by vote and that they could still change, but another diplomat said Brussels would have no choice but to respond "forcefully".
Most EU member states want to keep options on the table but have backed the commission's attempts to try once again to get an agreement before firing off retaliatory measures.
The EU's top trade negotiator, Maros Sefcovic, jetted to Washington on Wednesday for talks with his US counterparts but the commission did not provide details on meetings.
There are questions over Europe's appetite for a damaging fight with Trump if he slaps on the 30-percent levies as promised.
But France has been pushing for Brussels to take a harder line and consider deploying its most powerful trade tool, known as the anti-coercion instrument, if negotiations with the United States end in disappointment.
Even if Brussels were to activate this so-called trade "bazooka", it could take months before any measures were taken, according to the rules.
First, the commission would have four months to investigate the third country it accuses of detrimental trade policies -- then member states would have eight to 10 weeks to back any proposal for action.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Euronews
28 minutes ago
- Euronews
Lion's share of tripled EU migration budget aimed at border management
Funds dedicated to migration are tripled in the EU Multiannual Financial Framework (MFF) proposal, but the lion's share, €48 billion, has been earmarked for policies related to border protection and police operations. Of the total €74 billion earmarked in the MFF 'to make Europe safer and more secure', €26 billion will be dedicated to migration management, including issues related to reception of asylum seekers and other non-border related issues. Commission President Ursula von der Leyen's €2 trillion MFF proposal is designed to cover the seven-year period after 2028. In the previous 2021-2027 budget, €25 billions in total were allocated to migration, with €14 billion aimed at border management and €11 billion to asylum reception and integration. The ratio of budget allocated to border management has therefore increased from almost evenly balanced to two to one vis-a-vis migration reception systems. In the next budget cycle EU border agency Frontex alone would bag €12 billion under the proposal, and is expected to undergo a sea change next year, with a sharp increase in staff and new rules of engagement at EU borders. On top of these funds, other budget lines earmarked under the so-called 'Global Europe Instrument' could be used to deter migrants from arriving in Europe. The external action of the EU includes macro financial assistance to third countries, which is often linked to their commitment to prevent migrants' departures from their shores. Funds to third countries that fail to manage irregular migration may be suspended, except humanitarian aid, said an EU official. Critics from civil society The approach has been criticised by human rights groups which monitor the work of the Commission on migration. 'The home affairs funds proposal focuses on border management at the expense of asylum and inclusion,' the European Council on Refugees and Exiles (ECRE) told Euronews in a statement. "The proposals regarding border and migration policies again focus heavily on militarising borders, escalating the course the EU has been on for over a decade, despite its continued failure in all aspects,' Mark Akkerman, researcher at Stop Wapenhandel and the Transnational Institute told Euronews. 'Billions in proposed spending will end up primarily in the pockets of arms companies, while people on the move will continue to face death, violence, risks and human rights violations,' he added. 'What we know is that the proposal is to increase resources for funds that have sponsored violent border surveillance in the past, like the Border Monitoring and Visa Instrument or the Internal Security Fund. The same goes for Frontex, an agency that's been accused of complicity in human rights violations at the borders multiple times,' Chiara Catelli, Project Officer at PICUM, the umbrella organisation for undocumented migrants, told Euronews. Euronews asked some clarification to the European Commission on the long term spending, without receiving a reply at the time of publication. This reporting is based on MFF budget information available up to this point - no legal texts have been published yet.
Euronews
28 minutes ago
- Euronews
Meta rebuffs EU's AI Code of Practice
US social media company Meta will not sign the EU's AI Code of Practice on General Purpose AI (GPAI), the company's Chief Global Affairs Officer Joel Kaplan said in a statement on Friday. 'Europe is heading down the wrong path on AI. We have carefully reviewed the European Commission's Code of Practice for GPAI models and Meta won't be signing it,' he said, adding that the Code 'introduces a number of legal uncertainties for model developers, as well as measures which go far beyond the scope of the AI Act.' The Commission last week released the Code, a voluntary set of rules that touches on transparency, copyright, and safety and security issues, aiming to help providers of AI models such as ChatGPT and Gemini comply with the AI Act. Companies that sign up are expected to be compliant with the Act and can anticipate more legal certainty, others will face more inspections. The AI Act's provisions affecting GPAI systems enter into force on 2 August. It will take another two years before the AI Act, which regulates AI systems according to the risk they pose to society, will become fully applicable. OpenAI, the parent company of ChatGPT, has said it will sign up to the Code once its ready. Criticism from tech giants The drafting process of the Code was criticised by Big Tech companies as well as CEOs of European companies, claiming they need more time to comply with the rules. 'We share concerns raised by these businesses that this over-reach will throttle the development and deployment of frontier AI models in Europe, and stunt European companies looking to build businesses on top of them,' Kaplan said. The Code requires sign off by EU member states, which are represented in a subgroup of the AI Board, as well as by the Commission's own AI Office. The member states are expected to give a green light as early as 22 July. The EU executive said it will publish the list of signatories on 1 August. On Friday the Commission published further guidance to help companies comply with the GPAI rules.
France 24
28 minutes ago
- France 24
EU targets Russian oil in tough new Ukraine war sanctions
The 18th round of economic measures from Europe against Russia since its 2022 invasion comes as allies hope US President Donald Trump follows through on his threat to punish Moscow for stalling peace efforts. "The EU just approved one of its strongest sanctions packages against Russia to date," EU foreign policy chief Kaja Kallas said. "The message is clear: Europe will not back down in its support for Ukraine. The EU will keep raising the pressure until Russia ends its war." Ukrainian President Volodymyr Zelensky hailed the sanctions' adoption as "essential and timely". The new measures were approved after Slovakia dropped a weeks-long block following talks with Brussels over separate plans to phase out Russian gas imports. Kremlin-friendly Slovakian leader Robert Fico -- whose country remains dependent on Russian energy -- dropped his opposition after getting what he called "guarantees" from Brussels over future gas prices. France's Foreign Minister Jean-Noel Barrot called the latest moves "unprecedented" and said that "together with the United States we will force (Russian President) Vladimir Putin into a ceasefire". "We are keeping up the pressure on Russia," said German Chancellor Friedrich Merz. But the Kremlin said it would seek to "minimise" the impact, and warned the measures would backfire on the EU. As part of the new sanctions designed to sap Russia's war chest, the EU agreed to lower its price cap on Russian oil exported to third countries around the world, to 15 percent below market value. That comes despite EU allies failing to convince Trump to go along with the plan. The cap is a G7 initiative aimed at limiting the amount of money Russia makes by exporting oil to countries such as China and India. Set at $60 a barrel by the G7 in 2022, it is designed to limit the price Moscow can sell oil around the world by banning shipping firms and insurance companies dealing with Russia to export above that amount. The EU has largely already cut off its imports of Russian oil. Under the new EU scheme -- which Brussels hopes will get G7 allies like Britain and Canada on board with -- the new level will start off at $47.60 and can be adjusted as oil prices change in the future. EU officials admit that the scheme will not be as effective without US involvement. Tankers, refinery, banks In addition, officials said the EU is blacklisting over 100 more vessels in the "shadow fleet" of ageing tankers used by Russia to circumvent oil export curbs. There are also measures to stop the defunct Baltic Sea gas pipelines Nord Stream 1 and 2 from being brought back online in the future. Among other targets, sanctions will be placed on a Russian-owned oil refinery in India and two Chinese banks as the EU seeks to curb Moscow's ties with international partners. There is also an expanded transaction ban on dealings with Russian banks and more restrictions on the export of "dual-use" goods that could be used on the battlefield in Ukraine. The latest round of EU measures comes after Trump on Monday threatened to hit buyers of Russian energy with massive "secondary tariffs" if Russia doesn't halt the fighting in 50 days. The move from Trump represented a dramatic pivot from his previous effort of rapprochement with the Kremlin, as he said his patience was running out with Putin. The multiple rounds of international sanctions imposed on Moscow in the three-and-a-half years since its invasion have failed so far to cripple the Russian economy or slow its war effort. But Western officials argue that despite Russia's economy largely weathering the punishment to this point, key economic indicators such as interest rates and inflation are getting worse. © 2025 AFP
