France is urging the European Union to consider using one of its most powerful response mechanisms against the United States if President Donald Trump uses tariffs to force the bloc to change its policy, Bloomberg reported, citing its sources.
Paris has joined a small group of EU countries that believe that a mechanism designed to counter countries that use trade and economic measures as leverage should be considered as an option, even if it is not the preferred course of action.
It provides for several conditions and stages and would ultimately allow the EU to implement a wide range of countermeasures. These could include restrictions on trade and services, as well as certain intellectual property rights, foreign direct investment and access to government procurement.
The US plans to impose broad-based tariffs on imported goods from global partners starting April 2. Trump said the measures are aimed at removing "unfair non-tariff barriers" such as domestic regulations and the way taxes are collected, including the EU's value-added tax (VAT). For its part, the EU insists that its VAT is a fair and impartial tax that applies equally to both domestic and imported goods.