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Defending a rules-based trading system based on low tariffs, the EU executive said reciprocal tariffs were unjustified and that it will react swiftly.
ADVERTISEMENTThe European Commission will react “firmly and immediately” to reciprocal tariffs announced on Thursday by US president Donald Trump, saying it was “a step in the wrong direction”, and an open global system “benefits all partners”, in a statement issued by the executive on Friday.“The EU maintains some of the lowest tariffs in the world and sees no justification for increased US tariffs on its exports. Tariffs are taxes,” a Commission statement read, adding: “The EU will react firmly and immediately against unjustified barriers to free and fair trade, including when tariffs are used to challenge legal and non-discriminatory policies.”Since Monday and the announcement of 25% US tariffs on steel and aluminium, the EU has been preparing for a trade war with its long-standing ally, whose new Trump administration is delivering a U-turn on trade policy.On Thursday, Trump announced reciprocal tariffs on US trade partners on the basis of “country-by-country” examinations, which should be realised in a matter of weeks. US tariffs on aluminium and steel will take effect on 12 March.In 2018, the Trump administration slapped tariffs on aluminium and steel, with the EU retaliating on a range of American products. These sanctions were lifted under the Biden administration, but only temporarily, and may be reactivated by the EU.The Commission is currently considering its response.The EU has a new arsenal of trade defences that can be activated if pressure is brought to bear on its policies, under an “anti-coercion” instrument. It includes restrictions on the right to participate in public procurement tender procedure, restriction on licences, or for instance restrictions on trade in services and trade-related aspects of intellectual property rights.“World trade has flourished under predictable, transparent rules and low tariffs. For decades, the EU has worked with trading partners like the US to reduce tariffs and other trade barriers worldwide,” the Commission said in the statement, “reinforcing this openness through binding commitments in the rules-based trading system—commitments that the US is now undermining.”
