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EU, UK plan retaliation if Trump raises tariffs

The EU and the UK have been preparing retaliatory measures for months in case the new US President Donald Trump raises tariffs on European goods, POLITICO reports, citing sources.

Officials in Brussels and London are hoping to persuade Trump, who has come to power, not to hit European exports, but “they have a whole arsenal of retaliatory measures at the ready, including retaliatory tariffs.” The possible trade war scenarios have been being worked out in Europe over the past few months.

European leaders are also thinking through how to negotiate future agreements with Trump and show willingness to shoulder the burden of supporting Ukraine, according to POLITICO.

Immediately after his inauguration on January 20, Trump threatened the European Union with tariffs if it refused to buy more US oil and gas. He had previously repeatedly threatened to impose tariffs of 10-20 per cent on all imports from the EU. Trump also pointed to a $300 billion trade deficit with the European Union. The new American leader wrote on the social network Truth Social:

“I told the European Union that they must make up their tremendous deficit with the United States by the large scale purchase of our oil and gas. Otherwise, it is TARIFFS all the way!!!”

During his first term as president, Trump imposed tariffs on steel and aluminium from Europe of 25% and 10% respectively. The EU fears he will revert to protectionist policies and raise tariffs again.

According to The Telegraph, UK Prime Minister Keir Starmer is already trying to negotiate a special deal with the new US administration that could exempt the country from paying tariffs.

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