The European Union (EU) and China are preparing countermeasures in response to former US President Donald Trump’s proposed ‘Liberation Day’ tariffs, which are expected to impose strict trade restrictions on multiple sectors. Both global powers are eyeing services surplus, agricultural exports, and technology restrictions as potential areas for retaliation.
EU’s Likely Countermeasures
The European Union may introduce new trade barriers targeting US industries, including:
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Tech Sector Restrictions: Limiting operations of major US technology firms in Europe.
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Intellectual Property Measures: Suspending certain patents and trademarks of American companies.
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Public Procurement Exclusions: Banning US firms from bidding on European government contracts.
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Financial Market Limitations: Reducing access for US financial institutions in the EU.
China’s Response Strategy
China is also considering harsh retaliatory measures, primarily targeting US agricultural exports, which form a significant portion of American trade revenue. Potential actions include:
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Higher Tariffs on Farm Goods: Increasing levies on soybeans, pork, beef, and grains—key exports to China.
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Non-Tariff Barriers: Imposing stricter customs inspections and regulatory hurdles to delay American imports.
Global Trade Tensions Escalate
With both the EU and China weighing their options, global trade uncertainty is expected to rise. The proposed tariffs could have far-reaching economic consequences, affecting businesses and consumers across multiple industries. Investors and policymakers will closely monitor how these trade disputes unfold in the coming months.
