The European Union’s so-called Trump task force spent 2024 preparing for a possible trade dispute. Specifics are secret, but guiding principles are becoming clear.The European Union’s “Trump task force” spent 2024 preparing for a potential trade dispute with the United States. While the specifics of their plans are still secret, the guiding principles are becoming clear. The EU spent last year devising strategies in case President Trump followed through on his threats to impose higher tariffs on European goods and services. Now, as those threats become more real, the EU’s plans are coming into focus.
The main goal of the EU’s plan is to avoid a trade war with the US. They are willing to negotiate and offer incentives, such as increasing purchases of American gas, to appease Trump. However, if these efforts fail, the EU is prepared to hit back with targeted tariffs on specific sectors, including products made in Republican states. They are also considering new tactics that could impact service providers, such as big Silicon Valley technology firms.
The EU is aware that a trade war with the US would be detrimental to both sides and could benefit their geopolitical rivals, such as China and Russia. However, Trump has continued to target the EU, stating that they will face tariffs “pretty soon.” In response, the EU is making it clear that they are ready to retaliate if necessary.
“We are prepared,” said Ursula von der Leyen, the president of the European Commission, during a news conference this week in Brussels. She emphasized that the EU is ready to fend off any tariff increases from the new US administration.
According to three diplomats who requested anonymity, the EU’s plan is to hit specific, politically sensitive sectors with targeted tariffs, but to avoid escalating into a tit-for-tat competition if possible. The EU is hoping to avoid using this “rough playbook,” but they are prepared to do so if necessary.
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