If U.S. President Donald Trump's remarks on 'digital regulatory retaliation' come to fruition, it is necessary to reconsider the EU-U.S. trade agreement, said the head of the European Union (EU) industry.
According to Politico's European edition on the 27th (local time), Stefan Sejourne, the EU Chief Executive Vice President for Prosperity and Industrial Strategy, responded to a question at a conference hosted by the Mouvement des entreprises de France (MEDEF) about whether, even if the current U.S. digital policy continues, the trade agreement with the U.S. remains valid.
Sejourne noted, "At present, I have only heard intentions, but no (policy) announcements," and added, "If those intentions turn into announcements, the trade agreement will need to be reconsidered."
Earlier, U.S. President Donald Trump warned on the 25th regarding digital regulations, stating, "Unless discriminatory measures are removed, we will impose significant additional tariffs on the exports of that country to the U.S. and introduce restrictions on exports of technology and semiconductors that we vigorously protect."
The EU is enforcing various digital regulations, including the Digital Services Act (DSA) and the Digital Markets Act (DMA), and President Trump has consistently expressed dissatisfaction with these.
The EU recognizes that the results of tariff negotiations with the U.S. have been unfavorable and is taking the stance of diversifying trade relations with countries around the world, completing the trade agreement with the Mercado Común del Sur (MERCOSUR) to promote growth in European industry.
Sejourne said, "International trade is now becoming a geopolitical issue," adding, "As former European Central Bank President Mario Draghi pointed out, commercial power can no longer replace geopolitical power."
He continued, "The weakness of the EU lies within its structure," and added, "Trump has linked different issues, such as trade, defense, and the territories of Canada and Greenland, and not all of these fall under EU jurisdiction."