Tánaiste Simon Harris has cautioned against an “extraordinary escalation” in trade tensions between the European Union and the United States, urging the EU not to target US tech companies in retaliation for President Donald Trump’s tariffs on European goods.
Speaking at an emergency meeting of EU trade ministers in Luxembourg, Harris expressed concerns about the potential use of the Anti-Coercion Instrument (ACI), a powerful tool that would allow the EU to retaliate against US tech services, intellectual property, banking, and public procurement. He warned that invoking the ACI would represent a dramatic escalation, calling it “the nuclear option” in the ongoing trade dispute.
Harris emphasized that the EU must prioritize de-escalation over further confrontation, advocating for a more measured response to the US tariffs. “What we need to do here is step-by-step in a measured way, consider how best to respond,” Harris stated. He highlighted that the majority of European counterparts, in consultation with the European Commission, did not support using the ACI at this time. Instead, EU leaders are focused on addressing the steel and aluminum tariffs imposed by the US, followed by negotiations aimed at resolving the broader trade conflict.
Meanwhile, reports from RTÉ News suggest that the EU’s response to President Trump’s tariffs could involve imposing duties on US goods worth up to €400 billion. This would be in retaliation for the US’s 25% tariffs on steel and aluminum, the 20% blanket tariffs on most EU exports, and the 25% tariffs on European cars and auto parts. The European Commission is expected to release a final list of US products to be targeted in response to the steel and aluminum duties, with member states set to vote on the list this Wednesday.
The European Commission has already circulated a 99-page document detailing the potential US products for retaliation, and countries like Ireland, France, and Italy have lobbied for specific exclusions, including US bourbon, which was threatened with tariffs after Trump proposed 200% duties on European wine and spirits. It is believed that these lobbying efforts may have influenced the final list, though the details remain undisclosed ahead of the vote.
Harris reaffirmed Ireland’s commitment to EU unity and called for a firm yet proportionate response to the US tariffs. He also emphasized the importance of working towards a negotiated solution. US Treasury Secretary Scott Bessant confirmed that 50 countries, including EU member states, had reached out to the Trump administration seeking negotiations to ease the tariffs. Despite these efforts, there is no indication that the Trump administration is ready to back down.
EU Trade Commissioner Maroš Šefčovič also indicated that discussions between EU and US officials would continue, though no immediate resolution appears forthcoming. As the EU weighs its next steps, global markets remain on edge, with fears of an escalating trade war potentially triggering a global downturn and even a recession in the US.
