EU's Potential Response to US Steel and Aluminum Tariffs

In response to the US's proposed tariffs on steel and aluminum imports, the European Union (EU) has outlined several possible courses of action, including:

Retaliatory Tariffs

* The EU could impose tariffs on US products, similar to those implemented in 2018, targeting industries in states that supported the tariff decision.

Anti-Coercion Instrument

* This legislation empowers the EU to retaliate against countries that exert economic pressure to influence policy.
* The EU could restrict access to public procurement, services trade, or investments from the US.
* It could also limit intellectual property protection or curb the placement of US chemicals and agri-food products within the EU.

Technology Regulation

* The EU can utilize the Digital Markets Act (DMA) and Digital Services Act (DSA) to impose antitrust obligations and content moderation regulations on large US tech companies.
* Potential fines could reach 10% or 20% of global turnover under the DMA and 6% under the DSA.

Digital Service Tax

* The EU could reinstate plans for a Digital Services Tax on digital service providers.
* Such taxes could affect US tech giants with substantial operations in the EU.

Additional Measures

* The EU could also consider limiting investment opportunities for US companies or restricting access to EU markets for the US financial services industry.
* It could further tighten regulations on data privacy and protection, potentially impacting US tech companies' operations within the EU.