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EU Finalizes Response to US Tariffs, Eyes Negotiation Path
The European Union is preparing a counterstrategy in response to the United States’ recent imposition of 20% tariffs on all EU imports, a move that has escalated trade tensions between the two blocs. Despite warnings of a firm and quick response, the EU continues to finalize its countermeasures, aiming to avoid a full-scale trade war while keeping the door open for future negotiations.
The tariffs, announced by the US government on Wednesday, are the latest in a series of trade confrontations, following earlier duties imposed by the Trump administration on steel, aluminium, and cars. The EU, already dealing with the economic fallout of these earlier tariffs, is now faced with an additional 20% duty on all imports, adding complexity to its response.
“We are buying the space we need to negotiate with the Americans and are looking to target our response effectively,” said an EU official on Thursday. The EU’s approach will focus on limiting economic pain for its member states while also taking into account the potential impact on the US if necessary.
To counter the US tariffs, the EU is considering a range of retaliatory measures, including the targeting of US products in a two-phase response. The first set of countermeasures could be implemented by mid-April, with additional tariffs potentially coming into play by the end of the month. These tariffs could extend to key sectors such as cars, pharmaceuticals, steel, and semiconductors. Furthermore, the EU is contemplating using an “anti-coercion” tool adopted in 2023, which could affect US business licenses and intellectual property rights.
“We are not taking any option off the table,” stated a senior EU official. “Any response will be proportionate; we are not in the business of escalating but of solving things.” The EU’s goal is to navigate the situation without provoking further conflict, and it intends to employ these countermeasures as a means to incentivize the US to engage in meaningful negotiations rather than as a punitive measure.
EU Trade Commissioner Maroš Šefčovič is scheduled to speak with US counterparts on Friday via video call in an attempt to keep diplomatic channels open. The EU has emphasized its desire to negotiate from a “fair position” and a “position of strength.” As one senior EU official explained, the ultimate aim is not to punish but to create an environment that encourages negotiation.
The US has long maintained that the EU imposes a blanket 5% tariff on US imports, while EU officials point out that the average tariff the US applies to EU imports is 1.4%, slightly higher than the EU’s 1.2% average on US goods. The EU is keen to negotiate reductions in these tariffs, striving for a balanced and reciprocal agreement.
Negotiations are expected to focus heavily on five sectors that are critical to US interests: cars, aluminium and steel, semiconductors, lumber, and pharmaceuticals. These industries are expected to be the most contentious areas of discussion as both sides seek to resolve the trade impasse.
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Trump Weighs Troop Cuts in Spain and Italy Amid Growing Rift Over Iran War
President Donald Trump said on Friday that he is considering reducing the US military presence in Spain and Italy, widening a dispute with key NATO allies over their opposition to the ongoing war with Iran.
Speaking to reporters in the Oval Office, Trump suggested both countries had failed to adequately support Washington’s military campaign in the Middle East.
“Yeah, probably, I probably will. Why shouldn’t I?” Trump said when asked whether he would withdraw troops from the two countries. He added that Italy “has not been of any help” and described Spain as “absolutely horrible.”
The comments came just one day after Trump floated a similar proposal regarding Germany, following criticism from German Chancellor Friedrich Merz over the administration’s handling of the Iran conflict.
Trump has repeatedly argued that the US-led campaign against Iran serves the security interests of the entire Western alliance. He has expressed frustration that several NATO members have not provided stronger military or political backing, particularly in efforts to counter Iran and reopen the Strait of Hormuz.
According to the latest Pentagon figures, the United States has about 36,000 troops stationed in Germany, roughly 12,600 in Italy and nearly 3,800 in Spain. While Trump did not specify the scale of any potential reductions, reports in US media suggest the cuts under consideration could be substantial.
Tensions with Italy have grown in recent weeks after Prime Minister Giorgia Meloni publicly questioned the war. Trump, once a close ally of the Italian leader, accused her of lacking the courage to fully support the campaign.
Relations with Spain have been strained for longer. Disagreements initially emerged over Madrid’s stance on the war in Gaza and later expanded to include defence spending and NATO commitments. Spain has resisted Trump’s push for alliance members to raise defence spending to 5 per cent of gross domestic product.
Prime Minister Pedro Sánchez has said Spain will only increase military spending when it aligns with national interests. That position has drawn repeated criticism from Washington.
The Trump administration has previously threatened trade measures against Spain and has even raised the possibility of suspending the country from NATO. Reports last week indicated that such discussions have resurfaced amid Spain’s refusal to support the Iran campaign.
The diplomatic tensions come as the war enters its third month, with no clear end in sight. The conflict has disrupted global energy markets, especially after the closure of the Strait of Hormuz. Brent crude settled at around $114 a barrel on Friday, sharply higher than the roughly $70 level seen before the conflict began.
Trump’s latest remarks are likely to deepen divisions within NATO at a time when alliance unity is already under strain.
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Trump Threatens Troop Reduction in Germany Amid Dispute With Chancellor Merz
US President Donald Trump has suggested that the United States could reduce its military presence in Germany, escalating tensions with German Chancellor Friedrich Merz over the handling of the conflict involving Iran.
In a social media post on Wednesday, Trump said Washington was reviewing the possibility of withdrawing some American troops from Germany, with a decision expected soon. The announcement comes amid a growing public disagreement between the two leaders over US strategy in the Middle East.
“The United States is studying and reviewing the possible reduction of troops in Germany,” Trump wrote, signalling that the longstanding American military footprint in Europe’s largest economy could once again be under scrutiny.
Germany hosts some of the most important US military facilities outside the United States, including Ramstein Air Base, the headquarters of US European Command and US Africa Command, and Landstuhl Regional Medical Center, the largest American military hospital abroad.
Trump’s latest warning follows comments by Merz earlier this week, in which the German leader said Washington was being “humiliated” by Iran and questioned the effectiveness of the US approach to the conflict. Merz has repeatedly called for a clearer strategy and a diplomatic resolution to the crisis.
Despite the sharp exchange, Merz said on Wednesday that his personal relationship with Trump remained strong. He added, however, that he had harboured concerns from the outset about the military campaign against Iran.
The two leaders met at the White House in March, shortly after the United States and Israel launched strikes on Iranian targets. At the time, Merz said Germany was prepared to work closely with Washington on future regional strategy, while also warning that a prolonged conflict could inflict serious damage on the global economy.
That concern has intensified as the closure of the Strait of Hormuz continues to disrupt global energy markets. The vital waterway, through which about one-fifth of the world’s oil supply normally passes, has remained effectively shut since fighting began in late February.
“We are suffering considerably in Germany and in Europe from the consequences of the closure of the Strait of Hormuz,” Merz said, urging all sides to seek a resolution.
Trump, however, has shown increasing frustration with Germany’s stance. In a post on Tuesday, he criticised Merz’s remarks on Iran and accused the chancellor of misunderstanding the threat posed by Tehran’s nuclear ambitions.
This is not the first time Trump has threatened to reduce US troop levels in Germany. During his first term, he announced plans to withdraw nearly 10,000 troops, citing Berlin’s defence spending. That proposal was later halted by the Biden administration.
Any renewed reduction would likely raise fresh questions about US commitment to NATO and European security at a time of heightened global instability.
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