EU Prepares for Trade War with US, Targets Online Services
The European Union is ready to engage in a trade war with the United States, according to French government spokeswoman Sophie Primas. In response to Donald Trump’s new tariffs, the EU plans to "attack online services" and target "all products and services" by the end of April.
EU’s Two-Stage Response
The EU’s response will be two-staged, with an initial response set to be implemented around mid-April, focusing on aluminium and steel. The second stage will target all products and services, with the measures likely to be in place by the end of April.
Impact on Wine and Spirits
The French association representing wine and spirits exporters (FEVS) has expressed significant concern about the impact of the US tariffs on the wine and spirits sector. Exports of French wines and spirits to the United States could drop by around 800 million euros, with the figure estimated at 1.6 billion euros for the EU.
Macron to Meet with Impacted Sectors
President Emmanuel Macron will meet with representatives of French sectors impacted by the tariff measures on Thursday. The meeting is set to take place at 1400 GMT.
EU’s Tools for Trade War
The EU has a range of tools at its disposal to respond to the US tariffs. Primas emphasized that the EU is "ready for a trade war" and will look at how to support production industries.
Imperialist Stance
Primas also criticized Trump’s approach, stating that he "thinks he is the master of the world" and is taking an imperialist stance.
France’s Wine and Spirits Industry
The French wine and spirits industry is heavily reliant on exports to the United States. In 2024, France exported around 2.4 billion euros worth of wines and 1.5 billion worth of spirits to the United States, its largest export market.
CNAOC’s Estimate
Separately, the CNAOC wine and spirits association estimated the impact of the new US tariffs at "several hundred million euros". For French-made cognac and armagnac, the association described the situation as a "catastrophe of unimaginable proportions".
Conclusion
The EU’s response to the US tariffs is a strong indication that the trade war is far from over. The impact on the wine and spirits industry is likely to be significant, and the EU’s measures will aim to mitigate this impact.
FAQs
Q: What is the EU’s response to the US tariffs?
A: The EU plans to "attack online services" and target "all products and services" by the end of April.
Q: How will the EU support production industries?
A: The EU will look at how to support production industries as part of its response to the US tariffs.
Q: What is the impact of the US tariffs on the wine and spirits industry?
A: Exports of French wines and spirits to the United States could drop by around 800 million euros, with the figure estimated at 1.6 billion euros for the EU.
Q: What is the EU’s stance on the US tariffs?
A: The EU is "ready for a trade war" and is prepared to take measures to respond to the US tariffs.