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EU Prepares for Possible Trade Showdown with Trump Administration

The European Union is readying its strategy in response to potential U.S. tariffs on European goods and services, aiming to avoid a trade war.

By Jeanna SmialekSource: nytimes.com1 min read
EU Prepares for Possible Trade Showdown with Trump Administration
Image via nytimes.com

In brief

With rising tensions, the EU's secret plans could target politically sensitive sectors while pushing for negotiations to prevent a damaging trade conflict with the U.S.

The European Union has been gearing up for potential trade skirmishes as President Trump threatens to impose higher tariffs on goods coming from Europe. Last year, the EU developed secret strategies that outline its responses should these threats become reality. Aiming to minimize the risk of a trade war, the EU is looking at more focused approaches that could strategically target specific sectors in the U.S., especially those linked to Republican strongholds. Leaders are opting for the "carrot and stick" approach, proposing to increase purchases of American gas while warning that they are fully prepared to retaliate if negotiations fail. Concerns are growing in Europe that a trade dispute could backfire, benefiting rivals like China and Russia. President of the European Commission, Ursula von der Leyen, recently emphasized the willingness to defend their interests, stating Europe is ready to counter any tariff increases from the U.S. as these issues heat up in the coming months.

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