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EU Cautiously Weighs Retaliation Against US Trade Tensions

1/21/2026

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Summary

Story summary

The European Union remains cautious about targeting United States services in response to trade tensions, despite a sizable US trade surplus.
EU leaders plan to discuss U.S. President Donald Trump’s tariff threats, and officials warn retaliation against services could escalate tensions.
France, Germany, and Spain propose using the EU’s anti-coercion instrument to restrict US services, but only as a last resort because Europe relies on American firms.

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Story summary

The European Union remains cautious about targeting United States services in response to trade tensions, despite a sizable US trade surplus.
EU leaders plan to discuss U.S. President Donald Trump’s tariff threats, and officials warn retaliation against services could escalate tensions.
France, Germany, and Spain propose using the EU’s anti-coercion instrument to restrict US services, but only as a last resort because Europe relies on American firms.