It all went very quickly. On 12 March at 5.01, US tariffs on steel and aluminum from Europe entered into force. About an hr later, Ursula von der Leyen spoke. She announced that Brussels must defend consumers and businesses on the continent. She announced reprisals.
The European Commission, which is liable for EU trade policy, intended to impose duties on whisky, peanut butter and Harley-Davidson motorcycles, which were to apply from 1 April. Subsequent duties were to enter into force in the mediate of the period and concern American agricultural products, including poultry, beef, eggs, sugar and vegetables. In the first hours Brussels' consequence seemed decisive. Only a week passed — and Ursula von der Leyen withdrew.
On Thursday, the European Commission announced that it would postpone the introduction of duties on whisky, peanut butter and motorcycles. They are not to enter into force until mid-April, together with customs duties on agricultural products. Sounds like a method issue. In fact, however, there is more behind this decision — a serious divided on the continent.
What happened since March 12? In consequence to Brussels' plans to introduce duties on whisky, US president Donald Trump threatened to impose 200 % customs duties on EU wine and champagne. any governments were shocked by this announcement — and the blade of their criticism was directed at the European Commission. French Prime Minister Francois Bayrou said that this organ most likely made a mistake. The head of the Italian government, Giorgia Meloni, in turn, called on the EU to "greater pragmatism".
The unity that seemed to be just over a week ago abruptly falls apart. This happens despite the fact that The trade war between Europe and the US has not truly even begun. The European Commission claims that the postponement of duties creates additional area for discussion with the US government. This is to facilitate constructive dialog and aid to find a solution to avoid unnecessary harm to both economies.
However, these diplomatic wordings are likely to hide the EU's conflict with France and Italy. Rumors circulating in Brussels show that both countries have been behind the scenes pushing the European Commission to postpone the introduction of duties. In the bullet holes, it is even said that whisky can be released from it.
Selective Approach
Resistance was predictable — the duties that Trump was facing, as they would not affect European countries equally. He is well aware of this — perhaps An effort to divide the EU in terms of trade policy may be part of its tactics. China has utilized this approach before erstwhile The European Commission has imposed duties on their electrical cars at the end of last year. Beijing then responded with duties on cognac, which in peculiar hit the French.
The government in Paris then maintained a strong attitude in its dealings with China. However, in a dispute with the United States, he clearly seeks compromise. It is so easy to see the logic here — EU countries mostly support customs against others unless they are at the centre of retaliation.
You can talk about the NIMBY effect — is an acronym from the expression “not in my backyard” (Not In My Back Yard). It's an attitude of opposition to certain investments in its immediate neighbourhood, without criticizing them as such. This is for example the case for wind turbines and solar farms. Many people believe that they are fundamentally good, but just don't want them in their neighborhood. Europe seems to be experiencing its minute in trade policy.
