By In Brussels’ corridors of power, a quiet revolution is underway: 187 pages of leaked strategy documents reveal how Europe plans to fight a two-front trade war against both Washington and Beijing using precisely targeted economic counterstrikes.
Targeted Strikes:
- Against US:
- 25% duties on Kentucky bourbon (Mitch McConnell’s home state)
- Ban on California tech firms bidding for EU cloud contracts
- Accelerated antitrust case against Texas LNG exporters
- Against China:
- Anti-dumping duties on Guangdong solar components
- Luxury car inspections slowing Zhejiang-bound Porsche/Audi shipments
- Subsidy probes into Henan battery manufacturers
Legal Innovations:
The EU is pioneering:
- “Carbon Intensity Tariffs” on goods from US states with weak climate policies
- “Subsidy Clawbacks” demanding repayment from firms benefiting from IRA
- “Just-in-Time Disruptions” for critical Chinese industrial imports
Corporate Fallout:
- BMW delaying South Carolina EV factory expansion
- LVMH stockpiling handbags ahead of Chinese customs delays
- ASML restricting some DUV lithography tools to China