EU Must Be Prepared to Walk Away from US Trade Deal, Says Competition Tsar

Strategic Insights -

The EU must stand firm and be prepared to walk away from a trade deal with the US if Donald Trump acts on his threats to target the bloc unless it waters down its digital legislation, according to Teresa Ribera, the European Commission's executive vice-president. Ribera has called on the EU to be "courageous" in response to Trump's threats and to avoid the temptation of being subordinated to others' interests. The EU's trade negotiators have been "nice" towards Washington in finalising a trade deal agreed late last month, but Ribera has warned that the bloc should not accept any coercive moves by the US to water down the EU's landmark tech laws.

Key Takeaways:

  • The EU is prepared to walk away from a trade deal with the US if Donald Trump acts on his threats to target the bloc unless it waters down its digital legislation.
  • Teresa Ribera, the European Commission's executive vice-president, has called on the EU to be "courageous" in response to Trump's threats and to avoid the temptation of being subordinated to others' interests.
  • The EU's trade negotiators have been "nice" towards Washington in finalising a trade deal agreed late last month, but Ribera has warned that the bloc should not accept any coercive moves by the US to water down the EU's landmark tech laws.
  • The US has pressed for changes to the EU's digital regulations as part of the trade talks, according to people involved.
  • Ribera has stressed that it is the bloc's sovereign right how it deals with its own regulation, including its digital rules.
  • The EU will not hold back in carrying out investigations into the activities of US tech companies, including Elon Musk's X, Apple, and Facebook owner Meta, despite Trump's threats.
  • Brussels is set to implement its part of the trade deal by moving to lower tariffs on a range of US imports, including cars and other industrial products.

Statistics:

  • The EU has agreed to lower tariffs on a range of US imports, including cars and other industrial products.
  • The EU will spend hundreds of billions of dollars on US energy products and weapons as part of the trade deal.
  • 70% of American tech companies make great profits from the EU market, but they are subject to the same laws and regulations as any other player (Ribera's statement).

Sources:

  • European Commission's executive vice-president Teresa Ribera's statement to the Financial Times
  • Ursula von der Leyen's comments on the trade deal with the US (European Commission website)
  • People involved in the trade talks (no direct quote)
  • CAPTION(S): Picture this: Donald Trump with an image of Meta's data centre (Mandel Ngan/AFP/Getty)