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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
Britain and Norway Step Up Naval Patrols to Protect Undersea Infrastructure from Russia
Britain and Norway have launched new joint naval patrols aimed at protecting undersea cables from Russia, with a combined fleet of at least 13 warships safeguarding critical infrastructure in the North Atlantic, officials said. The announcement follows discussions in December between UK Prime Minister Keir Starmer and Norwegian Prime Minister Jonas Gahr Støre on defense cooperation.
British Defence Secretary John Healey said on Thursday that the operation was designed to deter Russian submarines suspected of “malign activity” near undersea infrastructure north of the UK. A frigate, aircraft, and hundreds of personnel monitored a Russian attack submarine and two spy vessels during an operation lasting more than a month. Healey said the Russian ships eventually left the area.
His message to Moscow was clear: “We see your activity over our cables and our pipelines, and you should know that any attempt to damage them will not be tolerated and will have serious consequences.” Healey emphasized that while global attention is focused on conflicts in the Middle East, Russia remains the main threat to the UK and its allies.
British officials have highlighted the overlap between Russia’s support for Iran and its ongoing war in Ukraine. Tehran has provided Moscow with Shahed drones, which are now also manufactured in Russia under the designation Geran. Healey said, “Putin would want us to be distracted by the Middle East. We will not take our eyes off Putin.”
The UK has also prepared to seize ships suspected of being part of Russia’s “shadow fleet,” a flotilla of old oil tankers of unclear ownership designed to bypass international sanctions imposed over Moscow’s 2022 invasion of Ukraine. Previously, the UK only assisted France and the US in monitoring such vessels. Healey said, “We are ready to take action” against these ships.
Norwegian Defence Minister Tore O. Sandvik, who signed the joint naval agreement with Healey, said the patrols allow both countries to “defend themselves together.” The deployment builds on a £10 billion (€11 billion) deal for Norway to purchase at least five British-made frigates, which, together with eight British ships, will operate along NATO’s northern flank.
Russian naval activity near UK waters has reportedly risen by 30 percent over the past two years. NATO officials have also warned that attacks on undersea cables are among the “most active threats” to Western infrastructure. Acting Assistant Secretary General for Innovation, Hybrid, and Cyber, James Appathurai, said recent incidents in the Baltic Sea and elsewhere reflect Russia’s long-term undersea program, which includes research ships, submarines, unmanned vehicles, divers, and explosives targeting communications and energy pipelines.
The new UK-Norway patrols signal a heightened focus on securing vital maritime infrastructure amid rising geopolitical tensions and increasing Russian naval operations in European waters.
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