The European Union has been hesitant to impose countermeasures in response to the U.S. tariff hikes due to the bloc's security dependence on the U.S., according to EU policy experts.
U.S. President Donald Trump announced Saturday that his administration would impose 30 percent tariffs on EU exports, arguing that bilateral trade had long been unbalanced and lacked reciprocity.
Countries across Europe have been warning about the impact of the seemingly unrelenting tariff assaults on their economies and have urged countermeasures.
During a press conference in Brussels on Monday, EU trade chief Maros Sefcovic noted that the 27-country bloc is preparing potential countermeasures worth 72 billion euros (about 84 billion U.S. dollars). He emphasized that the bloc "must be prepared for all outcomes, including, if necessary, well-considered proportionate measures to restore balance in our transatlantic relationship."
That stance reflects growing public sentiment that the EU should no longer compromise and should take actions against the U.S., according to Varg Folkman, a policy analyst at the European Policy Center.
"There is a growing public sense that some type of countermeasure would have to be imposed against Americans. We're narrowing the point where there won't be any more compromises to do. The EU really should push back harder than they have done so far, make Trump see that it won't be cost-free imposing these types of tariffs on the EU," he said.
Despite the rhetoric, the EU has been hesitant to implement any "countermeasures." The bloc has even postponed its first round of measures, originally scheduled to take effect on July 15, to until Aug 6 to allow more time for trade negotiations.
A major obstacle for policymakers may be the EU's heavy reliance on the U.S. for its security needs.
"Trump has thrown up into the air the security guarantee under the NATO pact. Of course, that is also something that's playing into the considerations of the EU. If they push back too hard against Trump when it comes to trade, is Trump going to say 'well, then I won't be funding NATO' or 'I won't be providing a security guarantee for Europe?' So, there are a lot of different pieces in this puzzle and it's a very hard line for the EU to thread," said Folkman.
"Donald Trump knows very well that the European Union is completely dependent on the security guarantee partnership of the United States. The European Union is in the weaker position. It's not an independent actor as they think they are. So the Europeans will always be very careful not to antagonize the United States," said Johann Weick, an expert on global trade law and EU policy.
Security dependence leaves EU cautious over countermeasures against US tariffs: analysts
