{"id":262026,"date":"2025-07-13T16:39:12","date_gmt":"2025-07-13T16:39:12","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/262026\/"},"modified":"2025-07-13T16:39:12","modified_gmt":"2025-07-13T16:39:12","slug":"calls-grow-louder-for-europe-to-deploy-its-big-bazooka-in-tariff-negotiations-the-irish-times","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/262026\/","title":{"rendered":"Calls grow louder for Europe to deploy its \u2018Big Bazooka\u2019 in tariff negotiations \u2013 The Irish Times"},"content":{"rendered":"

There was one line at the end of Donald Trump\u2019s<\/a> letter announcing new tariffs<\/a> of 30 per cent on trade coming from the European Union<\/a> that said a lot about the chaotic nature of his White House administration. <\/p>\n

The rate of US tariffs<\/a> \u201cmay be modified, upward or downward, depending on our relationship with your country,\u201d Trump told European Commission president Ursula von der Leyen.<\/a> <\/p>\n

The EU, of course, isn\u2019t a country, but it seems nobody spotted the error before the letter was sent out and then later posted by Trump on his Truth Social platform. <\/p>\n

Trump fired out similar letters to Canada, Mexico, Brazil and more than a dozen other trading partners in recent days. <\/p>\n

European leaders had been desperate to get a tariff deal over the line quickly and must now decide how to respond to this latest twist. <\/p>\n

EU and US negotiators had spent the past few weeks working on the outlines of a trade agreement that, among other things, locked in 10 per cent tariffs on EU goods, with some exemptions. <\/p>\n

Commission officials, diplomats and journalists in Brussels were on standby waiting for word that Trump had given the okay to the deal, which would have shielded the EU from higher trade levies.<\/p>\n

Instead the US president said tariffs of 30 per cent would be charged on EU trade from August 1st. <\/p>\n

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Here is the letter Donald Trump sent Ursula von der Leyen, announcing plans to put tariffs of 30% on EU trade, in what is a significant setback to negotiations to work out a preliminary EU-US trade agreement pic.twitter.com\/9osaTl0tMc<\/a><\/p>\n

\u2014 Jack Power (@jackpowerIT) July 12, 2025<\/a><\/p><\/blockquote>\n

The European Commission, which has been leading the negotiations, has two and a half weeks to get the US administration back to the table. The experience of this weekend has burnt a lot of goodwill. <\/p>\n

The EU had avoided antagonising Trump to date, to get a deal in the bag before a July 9th deadline, which the US pushed out to August 1st. Germany, Italy and Ireland had favoured a quick deal, even if that meant stomaching tariffs Trump had already introduced, without reply. <\/p>\n

Calls for the EU to take a more aggressive stance will get louder now. French president Emmanuel Macron said the 27-state bloc should turn to its \u201canti-coercion instrument\u201d to hit back hard, if a deal isn\u2019t agreed by August 1st. <\/p>\n

The anti-coercion instrument, known as the \u201cbig bazooka\u201d of the EU\u2019s trade arsenal, would give the commission powers to go after US multinational companies, slapping extra taxes on the digital revenues of tech firms. This is a major escalation the Irish Government wants to avoid. <\/p>\n

The EU\u2019s trade ministers had already been due to meet on Monday to discuss the tariff negotiations. That will feel more like an emergency huddle given the latest twist. <\/p>\n

Part of the problem is von der Leyen\u2019s commission does not have a direct line to Trump. <\/p>\n

[\u00a0EU to push for deal ahead of Trump deadline on tariffs, says Von der LeyenOpens in new window<\/a>\u00a0]<\/p>\n

EU trade commissioner Maro\u0161 \u0160ef\u010dovi\u010d was frequently talking to commerce secretary Howard Lutnick and trade negotiator Jamieson Greer on the phone, nudging the initial draft agreement into place. The about-turn by Trump has shown up the lack of influence US interlocutors have in his White House. <\/p>\n

Trump\u2019s letter demanded the EU eliminate its \u201ctariff and non-tariffs\u201d barriers, to get a more favourable US rate. He has complained about value-added tax (VAT) charged on products and rules banning US chlorine-washed chicken from the European market. The commission will not budge on either point. <\/p>\n

One Government source said the letter appeared to be an attempt to squeeze the EU for more concessions. <\/p>\n

[\u00a0Donald Trump\u2019s EU tariffs letter: This is how trade wars startOpens in new window<\/a>\u00a0]<\/p>\n

There should come a point where Trump will be in the mood to start signing agreements, to sell to his supporters as huge wins.<\/p>\n

Plenty of countries are jostling for spots in the queue to get tariff deals done, and European leaders might suddenly be feeling a little less confident about where the EU stands in that line. <\/p>\n