The Tánaiste has stated that it would be an “extraordinary escalation” for the European Union to target US tech companies in retaliation for US President Donald Trump’s sweeping tariffs on European goods.
Simon Harris advised against the European Commission utilizing the so-called Anti-Coercion Instrument, which would allow the EU a much wider array of responses, including targeting tech services, intellectual property, banking, and public procurement.
During an emergency meeting of EU trade ministers in Luxembourg, Mr. Harris remarked: “Entering that arena would represent an extraordinary escalation at a time when we should be striving for de-escalation.”
“In many respects, it is the nuclear option if we start discussing the use of the Anti-Coercion Instrument. What we need is a step-by-step, measured approach to determine the best way to respond.”
In the meantime, RTÉ News has learned that the total EU response to Mr. Trump’s tariffs could reach duties on US goods worth €400 billion.
This would serve as retaliation for the US tariffs of 25% on steel and aluminium, last Wednesday’s “reciprocal” tariffs of 20% on most EU exports, and the 25% tariffs on European car and autopart exports.
The European Commission plans to publish a final list of US products that will be targeted in response to the steel and aluminium tariffs tonight, with member states voting on that list on Wednesday.
It is understood that the Commission will assess the economic impact of this suite of tariffs before considering an expanded list in response to car tariffs and reciprocal measures.
The measures announced by the US President on Wednesday have heightened concerns over a potential global downturn and a recession in the United States.
EU ministers will concentrate on two primary agendas: first, an immediate retaliation against the 25% tariffs imposed by Mr. Trump on European steel and aluminium last month, and second, how to respond to his 20% blanket tariffs on nearly all EU exports to the US.
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Regarding the former, the European Commission has been circulating a 99-page list of US products that could face tariffs in reaction to the steel and aluminium duties.
Countries such as Ireland, France, and Italy have been advocating for US bourbon to be removed from the list, particularly since Mr. Trump threatened to impose a 200% tariff on European wine and spirits.
It is believed that this effort may have yielded some success, although the Commission has kept the final list confidential ahead of today’s meeting.
Read more: Trump’s tariff ‘medicine’ injects turmoil into global markets EU countries left grappling with implications of US tariffs
On the subject of the blanket US tariffs, Mr. Harris affirmed Ireland’s commitment to EU unity.
The Tánaiste called for a firm yet proportional response while pursuing a negotiated resolution.
In that context, US Treasury Secretary Scott Bessant mentioned that 50 countries have reached out to the Trump administration seeking negotiations to reduce the tariffs.
Mr. Bessant informed NBC News that President Trump now possesses maximum leverage.
The EU’s trade commissioner, Maroš Šefčovič, stated that he had a candid exchange of views with Commerce Secretary Howard Lutnick and Trade Secretary Jamieson Greer, and both parties would remain in communication.
These remarks do not indicate an impending concession from the Trump administration.
