In the glass tower on the outskirts of the historical center of Luxembourg, EU division was revealed at the beginning of the week. Mr Maros Sefcovic, Commissioner for Trade, talks with European ministers about fresh U.S. customs tariffs, the first exchange of sentences since Donald Trump's Liberation Day. After a while, Sefcovic invites everyone to a non-binding vote: who is in favour of retaliation in America and who is in favour of concessions?
Some ministers are in favour of a "nuclear option", as the public reports: a taxation on digital services. It would be an attack on large Tech, the heart of the American economy. Others like little drama and call for tariffs on individual American products. But which ones? There is no consensus here either. Others would alternatively not attack at all. large Break — only consequence to Liberation Day — did not happen this morning in Luxembourg.
Pushes in Brussels
“The plans have been finalised,” says 1 EU official. “ There were long lists of US products ready to impose countervailing duties,” he adds. According to this man, everything sounded good in theory. “But in practice everything becomes clear: the substance is harder than expected. This is due to the fact that the interests of European governments are very divergent.
On April 2nd in the White home Rose Garden, president of the United States Donald Trump promised to free his nation from economical dependence and reconstruct the golden age. He announced duties for all imports, 20% for EU countries and almost 50% for any another countries, after which he stated that many governments were desperate to negociate agreements. “They kiss my ass,” he said during dinner with friends from the party.
At the same time, however, the stock markets declined sharply, and the profitability of American bonds exploded — and with them the cost of 36 trillion dollars of public debt. The bond marketplace yet forced Trump to make concessions and on Wednesday reduced many of its duties, with a 10% rate now applicable to the EU. However, there are besides tariffs on steel, aluminum and cars.
So the trade war is not over yet. And Europe is inactive trying to find an answer. Sefcovic and his boss Ursula von der Leyen, the president of the European Commission, reiterate in public statements that they stand together and respond as unity. But behind the scenes, there are disputes about how, when, and even how. After more than 70 years of European integration, the trade war with Donald Trump reveals an uncomfortable truth: national interests dominate erstwhile push comes.
JIM LO SCALZO / PAPpresident Donald Trump holds a signed implementing regulation introducing fresh customs tariffs to US trading partners, Washington, USA, 2 April 2025.
Not in my backyard.
Two days after Sefcovic's gathering with European ministers, the Commission in Brussels, which is liable for European trade policy, announced duties ranging from 10 to 25 percent on any American goods, including jeans, motorcycles and beef. This is the lowest common denominator agreement, mini-revet. And even this was not unanimously agreed by the EU — Hungary was against it.
Originally, the Commission besides wanted to impose a levy on whisky, but France and Italy opposed it. Their diplomats called on EU officials to remove alcoholic beverages from their letters. They feared otherwise Trump could impose a work on wine, which is an crucial export commodity for both countries. Eventually, all the behind-the-clock arguments proved unnecessary: inactive in the same week, after Trump cut its EU duties by halfand Brussels has deferred any fresh duties.
Yeah. The stormy spring on the brink of global trade war shows how divided the continent is. EU countries support customs against America — unless they become Trump's anger center. You can talk about NIMBY syndrome, short for “not in my backyard”. This is the case with wind turbines and solar parks, for example. Many people like them, but they should not be in their own neighborhood. Europe seems to be experiencing its minute in trade policy.
Giorgia Meloni, Prime Minister of Italy, repeatedly called on the EU to be "more pragmatic", which most likely means: no fresh duties against America, please. He wants to go to Washington next week to discuss trade policy with Trump. Not everyone's happy about it; Some European governments fear that the president of the United States will accomplish precisely what he has always wanted: talks with individual countries alternatively of the EC. “ specified bilateral meetings are not very helpful today, ” says 1 EU diplomat. It's clear to everyone.
Nuclear Option
NIMBY syndrome can be observed not only for Italian and French wines. The question of whether the EU should take action against US companies specified as Google, Apple and Facebook is besides controversial. In Berlaymont, where the EC is based, officials are considering tightening the rules on data protection and distribution of illegal content. They can besides request a better insight into algorithms and reduce advertising on social media. They can besides support the taxation on online turnover of large technology companies — in another words, "nuclear option".
Some European countries are open to this idea. “This needs to be prepared”, said outgoing German economical minister Robert Habeck at a gathering with EU Commissioner Sefcovice in Luxembourg. French Trade Minister Laurent Saint-Martin said, "We cannot regulation out any option, either for goods or for services."
OLIVER HOSLET / PAPpresident of the European Commission Ursula von der Leyen (L) and Commissioner for Trade Marcos Sefcovic (P) at the gathering of the EC College in Brussels, Belgium, 9 April 2025.
There is 1 lever: although the EU exports more goods to the US than it imports from there, this ratio is the other for services. all time individual in Europe places an advertisement on Facebook or orders an Uber, the American economy uses it. In 2023 , newer figures are not yet available , with a surplus of EUR 109 billion in America .
Germany and France want to press Trump with a digital tax. But Ireland, where many technology companies have European headquarters, is against it. According to Dublin, an attack on large technologies must be avoided at all costs. The government fears the failure of taxation revenues and jobs.
As is frequently the case in Europe,paradises fight for their interests. A minimum consensus is reached at the end of the multi-day negotiations. A solution that everyone can live with, but that doesn't truly decision the continent forward.. France is against the work on whisky due to the fact that it fears for its wines. On the another hand, the country supports the digital service taxation — Ireland will yet gotta bear the consequences. NIMBY at its best.
