The European Union has stated that the U.S. has repeatedly breached the terms of their trade deal, leading the bloc to consider retaliatory measures. European Parliament’s international trade committee chair, Bernd Lange, expressed concern over new U.S. tariffs and a lack of certainty, prompting the EU to pause ratification of the agreement. While the EU remains committed to the deal, it is seeking clarity from the White House and has its Anti-Coercion Instrument ready if necessary to counter what it perceives as coercive trade practices.
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The European Union warns that a 30% tariff on goods imported from the bloc by the United States would effectively halt trade. EU Trade Commissioner Maroš Šefčovič expressed concern over the potential for “super-negative” effects on both sides of the Atlantic and emphasized the EU’s desire for a negotiated agreement with Washington. The EU is delaying countermeasures on US exports to allow for more negotiation, but is preparing to retaliate. European stocks fell on Monday following the new tariff threat.
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The European Union’s response to US tariffs may center on regulating how American tech giants utilize European user data, a significant escalation in the ongoing trade dispute. This strategy, suggested by France’s finance minister, leverages a critical vulnerability: the immense value of the data these companies extract from the vast European market.
The sheer volume of data collected by American tech companies from European users represents a powerful bargaining chip. By implementing stricter regulations on data usage, the EU could significantly increase the cost of doing business for these companies, potentially forcing them to negotiate more favorable trade terms. This approach avoids the pitfalls of directly targeting products, as previous sanctions did, instead focusing on the services and software sector where the US holds a considerable advantage.… Continue reading
John Q. Hosedrinker 
Matt Underwood