EU retaliates with tariffs targeting $28 billion in U.S. goods

The European Union’s response to the U.S. tariffs might seem like a bold move on paper, but when you break it down, it’s clear this is a weak, half-hearted response. After the U.S. imposed tariffs on steel, aluminum, and related products, the EU hit back with countermeasures targeting $28 billion worth of U.S. goods. This includes everything from meat and cereals to diamonds and dental floss. But let’s not kid ourselves here. This isn’t a fight; it’s a slap on the wrist.

$28 billion sounds like a lot, but compared to the sheer size and influence of the U.S. economy, it’s a mere fraction. In fact, it’s almost laughable. If Europe really wanted to challenge America’s economic power, they would have to come much harder than this. The U.S. economy is the largest in the world, and the EU’s token response shows just how much they’re still intimidated by the United States.

The EU’s actions are telling. This isn’t about a fair trade dispute. The EU is tiptoeing around the real issue, trying to appear tough without getting burned. The tariffs are aimed at politically significant industries and states in the U.S., but that’s where the plan ends. While the EU likes to project strength, this response is more about optics than actual substance. They’re playing a game of economic chicken but aren’t willing to fully commit.

But that’s not all. The EU isn’t just stopping at tariffs. They’re also looking into other measures, like regulating data usage by U.S. Big Tech companies and possibly taxing American services. These moves would hit even deeper into America’s power base. However, these are just further signs of the EU trying to poke the U.S. without dealing the kind of blow that would cause real harm. They might try to hit tech giants, but this is a far cry from a full-scale economic war.

Now, there’s a vote scheduled for Wednesday, and it takes just 35% approval to pass these countermeasures. It could sound like a big moment, but honestly, it feels more like posturing than a real shift in power. If these measures do pass, they’re not going to end the world, but they could escalate tensions between the U.S. and Europe further. The real question is whether Europe will have the guts to escalate this conflict in a meaningful way.

Sources:

https://uk.finance.yahoo.com/news/trump-tariffs-live-updates-eu-prepares-countermeasures-markets-brace-for-turmoil-191201342.html