Why the EU takes no pleasure in hitting again at Trump’s tariffs

Good morning. Some non-trade battle information to begin: High defence and tech executives have written to the leaders of the UK and EU in a letter seen by the Monetary Occasions, urging them to signal a defence and safety deal subsequent month that will enable British arms corporations to completely take part in Europe’s rearmament drive.

Final night time, Donald Trump additional stepped up his commerce battle by rising tariffs on Chinese language items to 104 per cent. Right here, Sweden’s commerce minister tells our correspondent that EU retaliation on the tariffs will probably be painful in some ways, whereas our Rome reporter has information of a crackdown on Colosseum ticket touts.

The Union strikes again

Brussels will resolve as we speak whether or not to fireplace its first retaliatory shot in opposition to US President Donald Trump’s tariffs extra in sorrow than anger, Sweden’s commerce minister informed Andy Bounds.

Context: EU member states will vote on whether or not to approve tariffs on about €21bn value of US items, in return for the 25 per cent duties on European metal and aluminium Trump imposed final month.

Stockholm has but to resolve which approach it can vote, however as commerce is a European Fee competence, it will take a certified majority of member states to dam the retaliation, which might take impact in three tranches in April, Could and December.

Benjamin Dousa, commerce minister in Sweden’s centre-right authorities, mentioned his nation favoured free commerce — together with the fee’s proposal to the US to mutually get rid of all tariffs on industrial items.

“The US is one of our closest friends in the world. We want more trade,” Dousa mentioned. “It is when goods, services, talents, entrepreneurs, and ideas move freely over the Atlantic that humankind has made the biggest leaps forward. New pharmaceuticals, more powerful robots, exciting software: all of this is possible when Europe and the US collaborate.”

Nevertheless, Dousa backs the fee evaluation that the US just isn’t but prepared to speak significantly about dropping its 25 per cent tariffs on metal and aluminium and automobiles, plus 20 per cent on virtually every little thing else.

“If we are forced to go forward with countermeasures, member states will support it,” he mentioned.

EU commerce commissioner Maroš Šefčovič will ship his plan to retaliate in opposition to Trump’s so-called “reciprocal” tariffs early subsequent week. 

“I think that if current trends continue, the list of countermeasures will be a lot longer,” Dousa added.

One query is whether or not the EU ought to use its so-called anti-coercion instrument (ACI) for the primary time, which might enable it to hit US tech corporations and even ban US consultancies from profitable public procurement contracts.

“When considering using ACI we should be cautious,” Dousa mentioned. “It is a broad instrument, and it has never been used before, so we have to analyse it carefully. But in principle, all options are on the table.”

“However, if we go too fast, if we don’t think this through thoroughly, we could hurt ourselves more than we hurt the US economy,” he warned.

Chart du jour: Replicant

Within the race to create humanoid robots, China has a leg-up on the US, Europe and others due to its deep electronics and EV provide chains.

Vacationer lure

Getting tickets for Rome’s historic landmarks may quickly develop into a lot simpler: Italy’s antitrust authorities are cracking down on ticket scalping, writes Giuliana Ricozzi.

Context: For years, vacationers in Italy have struggled to search out tickets for the preferred museums and monuments, as scalpers and resellers purchase up entry passes in bulk and promote them on at a hefty mark-up.

Yesterday, Italy’s antitrust physique issued a €20mn nice in opposition to one firm and 6 tour operators that hoarded tickets for the Colosseum and compelled guests to purchase them at increased costs, coupled with extra companies.

The investigation was launched in 2023, after quite a few vacationers complained that it was inconceivable to search out tickets for the Colosseum, Italy’s hottest monument, visited by about 12.3mn folks every year.

CoopCulture, an organization that managed the Colosseum’s official ticket sale till 2024, “contributed, in full knowledge, to the phenomenon of the serious and prolonged unavailability of Colosseum entrance tickets at base price”, the watchdog wrote in a press launch. 

It mentioned that CoopCulture turned a blind eye to tour operators utilizing bots to purchase common on-line tickets in bulk, on the base value of €18. These then reappeared on on-line retailers’ web sites for €35 with a pretend “skip the line” service, or €68 euro together with a guided tour. 

This isn’t the primary time authorities try and curb such ticket schemes. Final 12 months, Italy’s monetary police cracked down on a ticket scalping system concentrating on guests of Florence’s Uffizi museum and the Galleria dell’Accademia.

What to look at as we speak

1. Ukrainian premier Denys Shmyhal attends EU-Ukraine affiliation council in Brussels.

2. European Fee president Ursula von der Leyen meets American Chamber of Commerce members.

3. The World Commerce Group holds a council on items commerce.

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