[Stefan Sejourne, EU Deputy Chief Executive (EPA=Yonhap News photo)]
The European Union (EU) Industry Chief warned on the 27th (local time) that if US President Donald Trump’s “digital regulation retaliation” comments become a reality, the EU-US trade agreement could be reconsidered.
According to Politico’s European edition, Stefan Sejourne, the EU’s Deputy Chief Executive for Prosperity and Industrial Strategy, attended a conference hosted by the French Economic Federation (MEDEF). When asked if the EU-US trade agreement remains valid despite the current US digital policy stance, he replied, “We have only heard the intentions so far, not the (policy) declarations.”
He added, “If those intentions turn into declarations, then a review of this (trade agreement) would be necessary.”
On the 25th, President Trump warned that “significant additional tariffs will be imposed on the US-bound exports of countries that do not eliminate discriminatory measures related to digital regulation, and restrictions will be introduced on the export of technology and semiconductors that we strictly protect.”
Although he did not mention specific countries or economic entities, there is analysis suggesting that the EU could be in the “line of fire,” considering the Trump administration’s repeated dissatisfaction with the EU’s Digital Services Act (DSA) and Digital Markets Act (DMA).
In an interview published the previous day with the French daily Le Figaro, Deputy Chief Executive Sejourne acknowledged the criticism that the EU had succumbed in tariff negotiations with the US by saying, “The balance of power was not favorable to the Europeans.”
He said, “The mandate given to the Commission was very clear: to avoid escalating conflicts and to prevent a ‘no deal,'” adding that “(Ursula von der Leyen) the Commission’s president thoroughly implemented this.”
He continued, “The Commission president also considered not only the instructions from the member states but also the requests from business leaders to avoid retaliatory measures that could trigger diplomatic conflicts with the Trump administration. Criticizing this after the fact is unfair,” he said.
Deputy Chief Executive Sejourne also stated, “Now international trade has become a geopolitical issue,” adding that “as Mario Draghi (former president of the European Central Bank) pointed out, commercial power no longer replaces geopolitical power.” Former President Draghi urged in last September’s report on “The Future of EU Competitiveness” that the EU’s global competitiveness is facing an “existential threat” and that a new survival strategy is needed.
Sejourne pointed out that “the EU’s weakness lies in the structure itself,” criticizing that “Trump linked different issues such as trade, defense, and territorial matters with Canada and Greenland, not all of which are under the EU’s jurisdiction.”
He further emphasized, “Considering these constraints, this agreement is not perfect, but it is much better than what other countries like the UK or Japan have achieved,” and highlighted that “a comprehensive cap of 15% was secured across all sectors.”