“We can’t rely on the U.S. anymore — it’s a new reality. So we have to be tough hitting back, that’s the only medicine,” one EU diplomat said.
Šefčovič visited Washington last month in an attempt to initiate a dialogue on averting a trade war, only to conclude that the Trump administration was not interested. “In the end, one hand cannot clap,” he said on Monday.
The United Kingdom, meanwhile, is keeping a low profile. “We’re not going to have a kneejerk reaction,” said an official from the Department for Business and Trade, pointing out that No. 10 is emphasizing the U.K. will “continue to take a cool-headed approach” to tariffs and to Trump’s antagonistic trade policy.
A bigger hit
The two diplomats — like the steel industry representative — said they expect the EU’s response package to pack more of a wallop than the suspended tariffs dating back to 2018.
That’s because the Trump administration — based on his executive orders from mid-February — has changed its tariff practices substantially. Most importantly, aluminum will rise to 25 percent from 10 percent the last time.
The EU will also no longer enjoy the quotas extended under the former administration of President Joe Biden, which allowed it to export tariff-free to the U.S. Meanwhile, Trump is adding products made mostly with steel — such as bolts and radiators — to the list of goods subject to tariffs; the implications for these “derivatives” are not yet fully understood, but it could affect around €7 billion in EU exports to the U.S.