Copenhagen, DENMARK – European Union leaders said they are ready to take “proportionate measures” against Donald Trump’s tariff threats as they prepare for a meeting with the U.S. president in Scotland this weekend.
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“Following a good call,” with Trump, “we have agreed to meet in Scotland on Sunday to discuss transatlantic trade relations, and how we can keep them strong,” European Commission President Ursula von der Leyen posted on X on Friday.
The online newspaper Politico reported EU diplomats are not counting on it.
“I think we have a good 50/50 chance,” of making a deal, Trump told reporters after touching down in Scotland on Friday. “That’s a lot.”
Olof Gill, spokesperson for trade at the European Commission, told Youth Journalism International that while negotiations are the priority, the EU is preparing counter measures. To make the response simpler, it will merge the two lists of retaliations into one, said Gill.
These measures wouldn’t be imposed before August 7 and are being submitted to member states for approval, said Gill.
If a deal is not made, Trump has threatened 30 percent tariffs on all EU products.
Poul Fritz Kjær, professor of business and politics at Copenhagen Business School, also spoke with Youth Journalism International.
The most logical retaliation would be to exclude American tech companies from public procurement, said Kjær.
Currently the EU relies on the five big American tech companies, said Kjær, but retaliating this way would be very provocative.
This is where the EU is limited because it does not want to upset America as it is still buying weapons from the U.S., said Kjær.
De-coupling, meaning to disengage from a country, was what Kjær said the EU would need to do with the U.S. if this continues.
Not many are using the word ‘de-coupling,’ Kjær said, but he said this is usually used when discussing China.
If done “right,” this could be a “win” for the EU in the long run, even creating growth as this would create new industry in the EU, said Kjær.
This would create a bigger market share for the EU tech companies, which exist, but just have lower market shares than the U.S. companies, said Kjær.
The downside is it would cost lots of jobs in the short term, said both Kjær and Svend Nielsen, an advisor to Think Tank Europa.
A possible deal with the EU could equate to 15 percent tariffs on all products, reported Politico, citing four unnamed diplomats.
If a 15% tariff stays in place, Kjær said, building new European industry in the tech sector will be more difficult.
But it goes both ways. Fifteen percent is not high enough to make a difference for the U.S. as it will not bring manufacturing back to America, said Kjær.
The EU needs to diffuse the situation, so making a deal would be a good idea, said Kjær, especially in light of the war in Ukraine and reliance on the U.S. for weapons.
Noah Haynes is a Correspondent with Youth Journalism International from Copenhagen, Denmark. He reported and wrote this story.
Lina Marie Schulenkorf is a Senior Reporter with Youth Journalism International from Dresden, Germany. She contributed to this story.
