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EU Divided Over Response to Trump’s Tariff Threats
While the European Union presents a united front against U.S. President Donald Trump’s newly announced tariffs on steel and aluminum, internal divisions are emerging over the best course of action. Some member states, led by France, are pushing for swift retaliatory measures, while others, including Germany, Italy, and Hungary, advocate for a more cautious approach focused on dialogue.
Trump’s Tariffs Spark Urgent EU Talks
Trump’s latest tariff decision, announced Monday, includes a 25% levy on imported steel and aluminum, citing national security concerns. The executive order, set to take effect on March 12, was followed by another announcement on Thursday: a plan for reciprocal tariffs on U.S. trading partners, to be determined on a country-by-country basis in the coming weeks.
In response, the European Commission vowed on Friday to react “firmly and immediately”, setting the stage for internal debate within the EU over how to proceed.
Hawks vs. Doves: A Divided Approach
Following an emergency video conference of EU trade ministers on Wednesday, the rift between hawks and doves became apparent.
- France, leading the hawkish camp, argues that strong and immediate retaliation is necessary to prevent excessive concessions to the U.S. “Every U.S. measure announced calls for an immediate response,” one official told Euronews.
- Germany, Italy, and Hungary, in contrast, prefer a more measured approach, advocating for continued negotiations with Washington rather than hastily imposing countermeasures. A diplomat from this group emphasized the importance of avoiding a tit-for-tat trade war.
Hungary, where Prime Minister Viktor Orbán maintains close ties with Trump, is pushing for no retaliatory action before March 12. Meanwhile, Italy insists on keeping diplomatic channels open before resorting to tariffs.
EU’s History of Retaliation and Future Strategy
The EU has previously responded to Trump-era tariffs. In 2018, the bloc countered U.S. duties on European steel (25%) and aluminum (10%) with €2.8 billion in tariffs on American goods. A temporary truce was brokered under President Joe Biden, but that agreement expires at the end of March 2024.
Since then, the EU has bolstered its trade defenses, introducing anti-coercion measures that allow restrictions on public procurement, services, and intellectual property rights in retaliation to trade threats.
Strengthening Global Trade Partnerships
Amid tensions with the U.S., the EU is working to expand its global trade network. Recent agreements include:
- A free trade deal with Mercosur nations (Argentina, Brazil, Paraguay, Uruguay)
- A trade pact with Switzerland, finalized in December
- A renewed agreement with Mexico, completed in January
- Reopened negotiations with Malaysia
Later this month, all EU Commissioners will travel to India for talks on a strategic partnership, including discussions on trade cooperation.
Outlook: Trade Tensions or Compromise?
With Trump signaling broader trade policy changes, EU officials, including Trade Commissioner Maroš Šefčovič, have warned that the bloc must prepare for more than just steel and aluminum tariffs.
Following a meeting with Canadian Prime Minister Justin Trudeau, European Council President António Costa reinforced the EU’s preference for diplomacy, tweeting: “Trade agreements are better than trade tariffs.”
Whether the EU opts for immediate retaliation or ongoing negotiations, its ability to maintain a cohesive response will be crucial in shaping its economic future amid a shifting global trade landscape.
News
Investigation Underway After Goa Nightclub Fire Kills at Least 25
Authorities in the Indian state of Goa have opened an investigation into a nightclub fire that killed at least 25 people, including several tourists, in one of the region’s most popular party districts. Six others were injured in the blaze, which broke out shortly after midnight in Arpora, a nightlife hub about 25 kilometres from the state capital, Panaji.
Goa Chief Minister Pramod Sawant confirmed the death toll in a statement posted on X, saying the victims included many of the club’s kitchen staff and a small number of visiting tourists. He added that all the injured were in stable condition and receiving medical treatment. Rescue teams recovered all bodies from the site.
Early reports from local police, cited by the Press Trust of India, indicated that a gas cylinder explosion triggered the fire. Witnesses, however, told the agency that the blaze appeared to start on the club’s first floor, where nearly 100 tourists were dancing at the time. As smoke and flames swept through the building, many people ran toward the lower floor, where they became trapped along with staff members.
Sawant said a formal inquiry would determine the exact cause and whether the club complied with fire safety regulations. He pledged strict action against anyone found responsible, writing on X that any negligence uncovered by investigators would be “dealt with firmly”.
Eyewitnesses described scenes of panic as patrons attempted to flee the burning building. “We rushed out of the club only to see that the entire structure was up in flames,” said Fatima Shaikh, who was inside when the fire began.
Prime Minister Narendra Modi offered condolences in a message on X, calling the incident “deeply saddening” and wishing the injured a swift recovery.
Local media reported that the club’s location along the Arpora River backwaters posed challenges for emergency crews. A narrow approach road forced fire engines to park about 400 metres from the entrance, slowing their response. Reports also revealed that the building had previously received a demolition notice after officials found it lacked a construction permit. That order was later withdrawn by senior state authorities, according to Arpora councillor Roshan Redkar.
Incidents involving gas cylinders and electrical faults are not unusual in India and often lead to heavy casualties, prompting renewed calls for stronger enforcement of safety standards. Opposition leader Rahul Gandhi criticised the tragedy as a “criminal failure of safety and governance” and urged a transparent investigation to establish accountability and prevent future disasters.
The probe into the fire is expected to assess structural safety, emergency exits and compliance with existing regulations as authorities work to piece together how the late-night gathering turned into one of the deadliest incidents in the state in recent years.
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