France suggests E.U. use trade tool against U.S

financialpost.com

France is advocating for the European Union (E.U.) to use a strong trade measure against the United States. This measure, called the anti-coercion instrument, could be used if President Trump pressures the E.U. into certain policy changes. Some E.U. countries, including France, believe this tool should be considered. The instrument is designed to help the E.U. retaliate against countries that use trade measures to coerce the bloc. It could allow the E.U. to impose trade restrictions and other forms of retaliation. The U.S. plans to introduce new tariffs on April 2. Trump claims these tariffs will address unfair trade practices from other countries, including the E.U.'s value-added tax. The E.U. argues that this tax is fair and applies to all goods equally. In response to the recent U.S. tariffs on steel and aluminum, the E.U. announced it would impose its own duties on American goods. This could lead to tariffs worth up to €26 billion. However, discussions about using the anti-coercion instrument are currently not a priority for the E.U. Commission. E.U. trade chief Maros Sefcovic said more information is needed before the E.U. can respond effectively to the U.S. tariffs. The E.U. is expected to take more time to come up with its response compared to earlier trade disputes. The anti-coercion instrument was created after the U.S. imposed tariffs on E.U. exports during Trump’s first term. It is meant to protect E.U. member states from external pressure while encouraging dialogue for resolution. The decision to use this tool will depend on whether member states feel coerced and if it's appropriate to apply the measure.


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