Transatlantic Tensions: Europe’s Retaliatory Tariffs and the Elusive Quest for a Trade Deal with Trump

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Europe Anticipated a Deal-Making Trump, But Faced a Different Reality

Europe was counting on the United States to negotiate agreements on tariffs and trade. However, with limited advancement in these areas, Europe is reluctantly beginning to retaliate.

Authored by Jeanna Smialek

Correspondence from Brussels

President Trump has expressed his disapproval of the European Union on several occasions. He has consistently argued that the organization was established with the intention of disadvantaging the United States. He has also promised to impose substantial tariffs on European automobiles. Recently, he implemented worldwide duties on steel and aluminum, which are anticipated to affect around $28 billion worth of exports from the European Union.

For several months, officials in the European Union aimed to persuade the American president to avert a damaging trade conflict. They sought to appease the U.S. administration by securing straightforward victories, such as increasing Europe's imports of American natural gas, while working towards a broader agreement.

It is increasingly evident that the situation will not be straightforward.

When the United States implemented tariffs on steel, aluminum, and related products on Wednesday, Europe responded by unveiling a comprehensive set of counter-tariffs. The initial phase is set to commence on April 1, with tariffs reaching up to 50 percent on items such as Harley Davidson motorcycles and Kentucky bourbon. A subsequent phase is scheduled for mid-April, focusing on agricultural products and industrial goods that hold significance for Republican regions.

European leaders have made it evident that they were reluctant to pursue such a forceful action: Their preference was to engage in negotiations, and this remains their stance.

"You can't clap with just one hand," remarked Maros Sefcovic, the European Commission’s trade representative, on Wednesday. "We can prevent the issues brought on by tariffs if the U.S. government takes our offered hand and collaborates with us to reach an agreement."

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